A Flexible and Diversified Approach to Equity Income Investing

Strategy Objective

Seeks to deliver total return, through a combination of offering a competitive current yield, while also providing the potential for capital appreciation


The Equity Income strategy utilizes a relative value approach to identify companies across sectors, geography, and market capitalization that we believe have the ability to sustain and/or grow their dividends and generate high free cash-flow that can be returned to investors in the form of stock buybacks or dividends.

Our investment strategy is total return oriented, and typically focuses on companies that display many of the following characteristics:

  • Pricing power that translates to the bottom-line
  • Earnings growth that leads to cash-flow growth, and not just “accounting” earnings growth
  • Cash-flow as it relates to a company’s free cash-flow generation and usage, and the ability of a company to sustain and /or grow cash-flows over time
  • Strong or improving competitive dynamic within the industry/sector
  • Strategic capital allocation or the use of capital that does not hinder current/future cash-flows
  • Improving cost structure or some form of current/future operational transformation

Differentiating Characteristics

Flexible & Diversified Approach to Income Investing

  • The ability to selectively invest in both equity and equity-related securities including convertibles and structured notes, allows us to obtain exposure to a broader investment universe of non-traditional equity income sectors and/or industries
  • The team’s fundamental, bottom-up research focuses on a company’s generation, usage, growth, sustainability, and protection of its cash-flows
  • We believe our flexible approach provides investors additional investment opportunities and can enhance diversification versus traditional equity income products

Distinct Portfolio Construction

  • Holdings fall into one of following groupings: Emerging Dividend Growers; Sustainable & Growing Dividend Yield; and High Dividend Yield
  • Helps to minimize both the sector and interest rate risks associated with simply investing in higher-yielding names
  • The ability to invest in equity-related securities (e.g., convertible equity, preferred stock, structure notes, etc.), helps further diversify the strategy by investing in sectors / industries not typically associated with dividend-paying companies

In-Depth Sector Specialization & Experience

  • Our experience in analyzing operational, financial, and regulatory factors within the broad equity income universe is bolstered by our sector / industry, and country expertise

Key Characteristics

Benchmark: S&P 500 Index
Number of holdings: Typically 70 – 90
Strategy Inception: January 2007
Market Cap: All-Cap
Turnover: 50 – 70% under normal market conditions

Investment Team

Our Equity Income team is a part of our Income & Infrastructure investment suite which also includes our Rising Dividend, Global Infrastructure, MLP, and Utility strategies.

The investment teams’ extensive experience within the utility and telecommunication sectors, which has historically been two of the higher dividend-yielding sectors, is complemented by our MLP / midstream energy infrastructure experience. In addition, the investment team leverages the firm’s internal research analysts where there is constant discussion, debate, and sharing of ideas across the suite and the broader firm.


Meet the Team

Please remember that there are inherent risks involved with investing in the markets, and your investments may be worth more or less than your initial investment upon redemption. There is no guarantee that the investment managers’ objectives will be achieved. Professional money management is not suitable for all investors. The risks associated with investing include but are not limited to: derivative securities, which may carry market, credit, and liquidity risks; short sales, which involve costs and the risk of potentially unlimited losses; leveraging, which may magnify losses; high yield (“junk”) bonds, which are subject to greater market risks; small/mid cap stocks which may be subject to more erratic market movements than large cap stocks; foreign securities, which are subject to currency fluctuation and political uncertainty; real estate, which poses certain risks related to overall and specific economic conditions as well as risks related to individual property, credit and interest-rate fluctuations; and mortgage-backed securities, which are subject to prepayment and extension risks.

Thematic and concentrated portfolios may not be suitable for all investors. Such portfolios are non-diversified, so a loss resulting from a particular security will have greater impact on the portfolio’s return. Fixed income investments are subject to interest rate risk, and their value will decline as interest rates rise.

Your investment objectives, risk tolerance, and liquidity needs must be reviewed before suitable programs can be recommended. Asset allocation and diversification strategies do not assure a profit or protect against loss in declining markets. Investors should consult with their attorney, accountant, and/or tax professional for advice concerning their particular situation.

Additional considerations:
This web site is not intended as an offer or solicitation with respect to the purchase or sale of any security or other financial instrument or any investment management services.
The does not constitute investment advice and should not be used as the basis for any investment decision. There is no assurance that the strategy objectives as discussed will be met. Further, there is no assurance that any strategies, methods, sectors, or any investment programs herein were or will prove to be profitable, or that any investment recommendations or decisions we make in the future will be profitable for any investor or client.
These materials do not purport to provide any legal, tax or accounting advice.