Investment approaches
Global Equity Income
A global strategy with a proven track record, aiming to generate sustainable returns by harnessing equity income through a disciplined, repeatable process
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Investing in cash-generative companies, with a valuation screen to help achieve a dividend yield above that of the comparative index
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A global investment universe offers investors an opportunity to diversify their equity-income investments. Active stock selection is guided by our investment themes, fundamentals and valuation
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A focus on sustainable dividends has given the strategy notable resilience in difficult market conditions
Our philosophy and process
- The strategy is conviction-based, with no regional or sector constraints. Portfolios tend to hold stocks of cash-generative companies with highly attractive dividend yields. The strategy employs a valuation screen to help portfolios in their aim to achieve a dividend yield above that of the index.
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A constantly evolving and forward-looking approach seeks to anticipate change, manage risk, and identify opportunities.
- ESG considerations are integrated throughout the research process and via proprietary quality reviews, to ensure that any material issues are captured.
Every time we consider a security or look at an industry or country, it’s in the context of what’s happening across the world. We believe the investment landscape is shaped over the long term by some key trends, and we use a range of global investment themes to capture these.
State intervention
Authorities have engaged in ever-greater policy intervention and regulation to shore up economic growth. We believe ‘state intervention’ has increased misallocation of capital, caused volatility in markets and inflated asset prices – and we think that calls for a stock-specific approach.
Smart revolution
Machines and networks are becoming more intelligent. This is disrupting the labour market, as machines increasingly replace humans in the workplace. ‘Smart revolution’ considers the implications commercially, socially and politically.
Net effects
The world has made the transition from connecting places to connecting people to connecting devices. The rapid rise in the ‘internet of things’ is transforming lifestyles and business. This creates winners and losers – our ‘net effects’ theme seeks to identify them.
Financialisation
Cheap money has caused rapid growth in a sector already supported by deregulation. ‘Financialisation’ investigates the implications of finance dominating economic activity, instead of serving it.
Investment team
Our Global Equity Income strategy is managed by an experienced team. Our global sector analysts and investment managers are located on a single floor in London, which helps to ensure that the investment process is flexible and opportunistic. Guided by our global investment themes, the team works together to identify opportunities and risks through research and debate.
- 18
- years’ average investment experience
- 13
- years’ average time at Newton
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Ilga Haubelt
Head of Equity Income
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Robert Hay
Portfolio manager, global equity income
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Paul Flood
Portfolio manager, global equity income
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Jon Bell
Portfolio manager, global equity income
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Zoe Kan
Portfolio manager, emerging and Asian equity income
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Tim Lucas
Portfolio manager, equity income team
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Ami Shah
Portfolio manager, equity income team
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Nick Pope
Junior portfolio manager
Strategy profile
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Objective
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To generate distributions over an annual period together with long-term capital growth from investing predominantly in global securities.
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Comparative index
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FTSE World Index
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Typical number of equity holdings
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40 to 70
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Yield discipline
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Every new holding in a global equity income portfolio typically has a prospective yield 25% greater than the index at the point of purchase. Any holding whose prospective yield falls below the comparative index yield will trigger our sale discipline process.*
*In order to prevent the portfolio from being a forced seller of securities that have suspended their dividend purely owing to the Covid-19 situation, a new sell discipline basket has been created specifically for such securities, which temporarily overrides the portfolio’s yield-based sell discipline. Securities falling into this basket may continue to be held providing there is a reasonable expectation that any dividends will be reinstated at a level consistent with the strategy’s yield criteria. The rationale for each affected security will be reviewed at least every six months. -
Strategy size
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£5.5bn (as at 31 Dec 2020)
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Strategy inception
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1 January 2006
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Strategy available through pooled UK vehicle
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BNY Mellon Global Income Fund
View fund performance
View Key Investor Information Document
View prospectus
Strategy factsheet
Performance and commentary for the last quarter.
Responsible investment report
Stewardship activities (voting and engagement) for the last quarter and ESG metrics.
Brochure
More detail on the strategy’s investment approach.
Quarterly video update: Q4 2020
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.