September 4, 2012 (PLANSPONSOR.com) - An alpha-generating investment process that draws on the global dividend-paying universe was developed by Acadian Asset Management LLC.
The Global Dividend Yield and Growth Strategy seeks to provide income that increases while still expanding real capital value over time.
After closely analyzing the characteristics of this universe for the past two years, Acadian said it constructed models to identify those companies best able to sustain and raise their dividends, and to eliminate those most likely to cut their payout. Using these models, the firm carried out portfolio simulations for the strategy for the period 1995 to 2011, which showed a total return ahead of traditional cap-weighted indices.
The fund will have particular appeal to institutional investors that have historically required regular cash from their portfolio, according to Ross Dowd, senior vice president and head of global marketing at Acadian. “We also understand that investors have different preferences regarding the balance between capital and income, and we are able to manage portfolios tailored to particular investor requirements in that respect,” Dowd said.
Acadian Asset Management, in Boston, is an investment management firm specializing in active global and international equity strategies.