Guinness Atkinson Asset Management, advisor to the Guinness Atkinson Funds, has launched a new equity fund aimed at providing investors with current income and consistent dividend that will exceed inflation.
The fund Inflation Managed Dividend Fund will invest in high quality, cash-generating and stable companies to construct an equally-weighted, concentrated portfolio of 35 stocks, diversified by geography and sector. A focus on companies that have generated consistent, inflation adjusted cash flow return on investment in excess of 10 percent for ten consecutive years can lead the investment team to a universe of companies that have flourished even during recessionary periods, while also screening out highly cyclical companies.
The fund will be managed by portfolio managers Ian Mortimer and Matthew Page, who have been with the company’s investment team since 2006 and 2005, respectively.
It will have an expense ratio of 68 basis points.
“Income oriented investors are facing unprecedented challenges in their search for yield while attempting to manage risk adequately, and the potential threat of rising inflation only compounds their difficulties,” said Guinness Atkinson Asset Management chief executive Jim Atkinson, in a statement.
“Our new strategy is designed to help play a role in meeting this challenge, with a focus on stable, high-quality companies across the globe that share a common trait: a history of generating consistently high cash flows and consequently rising dividends which produced an income stream growing faster than the rate of inflation.”
Tommy Fernandez writes for Money Management Executive.