Strategy highlights

  • Aims to deliver an attractive total return over the long term, pursuing an asymmetric return profile (low downside market capture)
  • Disciplined approach seeks to ensure that every stock and the overall portfolio compounds at a higher yield than that of the market, and that dividends are underpinned by durable cash-flow streams
  • A global investment universe offers investors an opportunity to diversify their equity investments. Active stock selection is informed by our consideration of themes, fundamentals and valuation
  • Stock selection driven by bottom-up proprietary research which is underpinned by our multidimensional approach

Strategy profile

Objective

The strategy seeks to outperform the FTSE World Index by more than 2% per annum over rolling 5-year periods on a total-return basis, by achieving income and capital growth from a global portfolio comprised of companies that typically yield at least 25% greater than the FTSE World Index yield.

Performance benchmark

FTSE World Index

Typical number of equity holdings

40 to 70

Yield discipline

Every new holding in a global equity income portfolio typically has a prospective yield 25% greater than the benchmark at the point of purchase. Any holding whose prospective yield falls below the benchmark yield will trigger our sale discipline process.

Strategy inception

1 January 2006

Strategy available through pooled UK vehicle

BNY Mellon Global Income Fund

View fund performance
View Key Investor Information Document
View prospectus

UK Inst Global equity income strategy factsheet

Strategy factsheet

Performance and commentary for the last quarter.

Investment team

Our Global Equity Income strategy is managed by an experienced team. In-house research analysts are at the core of our investment process, and our multidimensional research platform spans fundamental, thematic, responsible investment, quantitative, geopolitical, investigative and private-market research to promote better-informed investment decisions.

Meet the managers

Want to find out more?

James A Lydotes
James A Lydotes

Head of equity income and deputy chief investment officer, equity

Jon Bell
Jon Bell

Portfolio manager, Equity Income team

Robert Hay
Robert Hay

Portfolio manager, Equity Income team

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Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.

ESG can be one of many inputs into the fundamental analysis. Newton will make investment decisions that are not based solely on ESG analysis. Other attributes of an investment may outweigh ESG analysis when making investment decisions. The way that material ESG analysis is assessed may vary depending on the asset class and strategy involved. As of September 2022, the equity investment team performs ESG analysis on equity securities prior to their recommendation. ESG analysis is not performed for all fixed-income securities. The portfolio managers may purchase equity securities that are not formally recommended and for which ESG analysis has not been performed.

Key investment risks

  • Objective/performance risk: There is no guarantee that the strategy will achieve its objectives.
  • Currency risk: This strategy invests in international markets which means it is exposed to changes in currency rates which could affect the value of the strategy.
  • Derivatives risk: Derivatives are highly sensitive to changes in the value of the asset from which their value is derived. A small movement in the value of the underlying asset can cause a large movement in the value of the derivative. This can increase the sizes of losses and gains, causing the value of your investment to fluctuate. When using derivatives, the strategy can lose significantly more than the amount it has invested in derivatives.
  • Emerging markets risk: Emerging Markets have additional risks due to less-developed market practices.
  • Concentration risk: A fall in the value of a single investment may have a significant impact on the value of the strategy because it typically invests in a limited number of investments.
  • High yield companies risk: Companies with high-dividend rates are at a greater risk of being able to meet these payments and are more sensitive to interest rate risk.
  • Counterparty risk: The insolvency of any institutions providing services such as custody of assets or acting as a counterparty to derivatives or other contractual arrangements, may expose the strategy to financial loss.