The Grant Samuel Epoch Global Equity Shareholder Yield Funds, hedged and unhedged, have been awarded a ratings upgrade, from “Recommended” to “Highly Recommended”, from Zenith Investment Partners. The ratings upgrade comes as the funds surpass the $1.5 billion in retail assets under management mark.
In its product assessment Zenith said the funds are well-managed, providing an international equities exposure with a focus on companies generating attractive and sustainable cash flow and dividends.
“Given the strong investment process and highly capable investment team, Zenith’s conviction in the funds has strengthened and we have a higher level of confidence that the funds will achieve the investment objectives over a full market cycle.”
Only a small number of funds are awarded a “Highly Recommended” rating, which is the highest category awarded. Zenith’s “Highly Recommended” funds typically rate first quartile on each of the following criteria – investment personnel, security selection, portfolio construction, risk management, organisational strength, risk adjusted performance and product features.
The funds are managed by the New York-based equity manager, Epoch Investment Partners, and offer an internationally diversified equity portfolio consisting primarily of listed global companies with a history of attractive dividend yields and positive growth in free cash flow. The aim is to generate superior risk-adjusted returns with a dividend yield that exceeds the dividend yield of the MSCI World (ex Australia) Index.
Damien McIntyre, director and head of distribution with Grant Samuel Funds Management, says the funds’ focus is on investing in companies that are generating free cash flow and are run by management teams committed to deploying that free cash flow for the benefit of shareholders.
“Companies in the portfolio are chosen based on their management’s ability to create value for shareholders through consistent and rational capital allocation policies, with an emphasis of cash dividends, share buy-backs and debt reduction. These are the key components of sustainable shareholder yield.
“The strategy has been running for over six years, and during this time it has more than delivered on its objectives. The funds have been through a full market cycle and to date have not only outperformed, but have done so with lower volatility than most equity products while it delivered higher levels of income.
“These are factors that are increasingly important to retail investors, including self managed superannuation fund investors,” Mr McIntyre says.
The Grant Samuel Epoch Global Equity Shareholder Yield Funds were launched to retail investors in Australian in May 2008. It is available on the FirstChoice platform, as well as on the platforms of all the major banks and life insurers.