Equity

Resilient Global Equity Team

Invest in what we believe are best-in-class companies with resilient business models, exceptional management, financial strength, and proven track records of prudent capital allocation.

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Resilient Global Equity team: resilient companies, portfolios, and outcomes

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Paige Henderson: Our team brand statement is "Resilient companies. Resilient portfolios. Resilient outcomes." More broadly, we manage equity income solutions that are designed to drive substantial and growing income in a diversified portfolio and offer competitive returns over a full market cycle. We are focused on providing a superior outcome to our clients—typically individuals, companies, or foundations and endowments—that are relying on the income generated from their investments to further their goals. We see these portfolios as being an important solution for managing through times of market stress. They have proven to be defensive with lower volatility. In our view, resilient companies are mature, stable, strong companies, typically large cap. Many people might refer to these as franchise companies. They are industry leaders. These are companies with strong balance sheets and strong defensible margins. There's not a lot of doubt about what they do or whether their product is going to be successful. They are at a point in their life cycle where returning capital to shareholders is more likely than seeking capital for growth. And then, we buy them when we see a valuation opportunity, when we think the market isn't giving them enough credit, and where we see a definable reason—a catalyst—where the market perception will change and where the valuation gap is unlocked. In addition to buying stocks at attractive relative valuations, our focus on dividend yield adds to the defensive characteristic of the portfolio. The dividend yield tends to put a floor under a stock's price when the market is selling off because of the visibility of the cash return from the dividends. The Resilient portfolios are well-diversified across many dimensions: sector, industry, country, region, currency, growth, profile, and dividend yield. The comprehensive structure results in portfolios where relative performance is typically driven by stock selection rather than short-term tactical positioning or macroeconomic bets. A key element of the Resilient strategies is our balanced view between stocks we consider to be payers and stocks we consider to be growers. We solve for the higher yield objective by owning stocks with higher yields that typically have lower growth expectations. And we solve the growing income objective by owning stocks with higher growth expectations, which typically have lower yields. We strategically balance the portfolio between yield and growth in order to meet both objectives. One resilient outcome for this combination of growth, income, and moderately lower valuations has historically resulted in a low beta solution, meaning we give up some upside in aggressive markets and offset that with more defensive results in down markets. In downdrafts, these portfolios have typically outperformed the broad market, leading to an attractive return through a full market cycle.

Competitive advantages

Company

Quality franchises

The team invests in best-in-class companies with resilient business models, exceptional management, financial strength, and prudent capital allocation.

Brand Idea

Dividend is fact, yield is opportunity

Dividend yield is analyzed as a valuation signal to assess market sentiment and pricing opportunity.

Brand Volatility

Best of both worlds

A portfolio of dividend payers and growers can provide investors with both ballast and opportunity, as well as income, growth, and lower volatility.

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