Global Emerging Markets

China Income & Growth

At a Glance

Our strategy focuses on income and growth. We seek established companies with attractive dividend yields. A key distinction is that we emphasize predictable profitability and rising earnings to support the income stream, and capital appreciation of higher stock prices.

 Designed to Tilt Balance of Risk and Reward in Your Favour

  1. Rigorous bottom-up equity research and sophisticated portfolio construction methodology that generates alpha though security selection.

  2. Blending quantitative screening with qualitative analysis.

  3. Consistency in income and high-impact growth characteristics—including superior earnings growth, positive business momentum and sustainable profitability.

  1. Disciplined risk management with a large risk management team that is separated from investment functions to help safeguard client assets.

  2. Active management by an investment team with an average of over 20 years of experience.

  3. Client-centric focus. The size of our operations creates efficiencies, and those benefits are incorporated into client objectives.

Philosophy and Approach

  • With over 30 years of experience managing equity investments, our competitive advantage is a time-tested investment framework underpinned by a quality-biased philosophy, a continuously evolving process, a disciplined risk management culture and a deep commitment to client services.

    We believe that a company’s stock reacts positively to growth in earnings and cash flow, and that indicators of sustainable earnings growth appear at the company level before they are recognized in the stock price. We focus on stocks that show business momentum improvement and where the market valuation has not fully reflected that into the stock price.

    Our strategy focuses on income and typically has lower volatility than the relevant benchmark. 

    Investment Process:

    We use a ranking system based on earnings-per-share growth, positive earnings revisions, return on equity, valuation and income to narrow the extensive company universe to a smaller list of companies that are worthy of careful consideration.

    After screening identifies a stock of interest, the fundamental research team undertakes an in-depth qualitative analysis which looks to identify the drivers and sustainability of the strong earnings growth, analyze competitive advantages and validated earnings-growth assumptions.

     

  • Our screens not only highlight potential buy candidates, but also sell candidates. When the stock displays characteristics no longer consistent with our style, it is reviewed by the investment professional with the appropriate sector coverage. We base our sell decisions on negative changes to the ranking of the stock, a deterioration of the fundamental or qualitative reasons for the original purchase, or to enhance the portfolio with a superior investment idea.

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