Pension
FACT BOX
MANAGERS : Ian Mortimer & Matthew Page / LAUNCHED : 31 / 12 / 2010 / FUND SIZE : $ 3.7bn / OCF : 0.8 %
CROWN RATING
payments doesn ’ t correlate well with future dividend sustainability ,” he explained . “ There are lots of examples of companies that paid dividends for a long time but really shouldn ’ t have done , such as Tesco . “ Again , dividend cover works until earnings change . The pandemic was an extreme example , where earnings collapsed and cover was blown up .” Instead , Mortimer and co-manager
Matthew Page focus on balance sheet strength and metrics such as return on capital . These are not directly linked to dividends , but can provide a more accurate indication of future payments by exposing the strength of the underlying business . The managers ’ approach has paid off , with the fund the second-best performer in its sector over five and 10 years . It is yielding 2.6 %.
Performance of fund vs sector and index over 10yrs
IA Global Equity Income ( 143.7 %)
MSCI World ( 234.5 %)
Guinness Global Equity Income ( 234.4 %)
250 % |
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200 % |
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150 % |
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100 % |
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50 % |
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0 % |
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-50 % |
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Dec12 |
Dec13 |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Source : FE Analytics
Issue 90 - December 2022 / 43 /