Highlights
How can Global Equity Income provide resilient returns across market cycles?
In this on-demand webcast, Portfolio manager, Richard Saldanha, discussed how Global Equity Income has the potential to deliver Predictability, Protection and Growth in this exploration of the asset class and strategy.
Our approach to global equities
Aviva Investors’ Global Equity Income is a concentrated and high-conviction strategy, with relatively low holdings overlap with our peers. It aims to deliver an income yield of 125 per cent of the MSCI All Country World Index, while growing both capital and income.
We look at a broader opportunity set and focus on companies that fall outside of traditional income sectors, meaning our approach can complement existing global equity holdings, as well as offering clients a compelling standalone holding in their portfolios.
Potential benefits
Our differentiated approach to equity investing is underpinned by the following components and benefits:
Predictability
We focus on companies that offer predictable free cash flow to help deliver resilient income through periods of market stress and changes in the economic cycle.
Upside
We focus outside traditional income sectors, aiming to maximise potential growth, in both income and capital, through market cycles.
*The investment manager always applies the Firm’s Baseline Exclusions Policy and any specific constraints within a prospectus or IMA, but any other ESG factors or risk considerations are adopted at the manager’s discretion.
Global Equity Income investment strategies
Aviva Investors Global Equity Income Strategy
A concentrated, high-conviction strategy that focuses on a diverse range of opportunities outside of the traditional income sectors and aims to deliver growth as well as a yield that is 1.25x higher than the MSCI ACWI.
Equity income megatrends
Four megatrends reshaping the landscape and creating opportunities for equity income investors over the coming years.
Aviva Investors Global Equity Income: Strategy in brief
An income strategy targeting growth, diversification and resilience.
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Defensive sectors offer value amid AI frenzy: What next for global equity income investors?
Dividends proved resilient in the first half of 2023. Richard Saldanha considers what the rest of the year might have in store for income investors.
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Growth, diversification and resilience: Introducing the Aviva Investors Global Equity Income strategy
Income strategies can offer greater levels of capital protection in periods of market stress. With inflation likely to persist for longer, a global equity income strategy can offer clients the potential of more resilient capital and income growth.
Key risks
For further information on the risks and risk profiles, please refer to the relevant KIID and Prospectus.
Investment & currency risk
The value of an investment and any income from it can go down as well as up and can fluctuate in response to changes in currency exchange rates. Changes in currency exchange rates could reduce investment gains or increase investment losses. Exchange rates can change rapidly, significantly and unpredictably. Investors may not get back the original amount invested.
Emerging markets risk
Compared to developed markets, emerging markets can have greater political instability and limited investor rights and freedoms, and their securities can carry higher equity, market, liquidity, credit and currency risk.
Equities risk
Equities can lose value rapidly, can remain at low prices indefinately, and generally involve higher risks - especially market risk - than bond or money market instruments. Bankruptcy or other financial restructuring can cause the issuer's equities to lose most or all of their value.
Hedging risk
Any measures taken to offset specific risks will generate costs (which reduce performance), could work imperfectly or not at all, and if they do work will reduce opportunities for gain.
Illiquid securities risk
Certain assets held in the strategy could, by nature, be hard to value or to sell at a desired time or at a price considered to be fair (especially in large quantities), and as a result their prices could be very volatile.
Income risk
The investment objective of a strategy is to generate income, at times this may limit opportunities for capital growth.
Global Equity Income team
Richard Saldanha
Senior Portfolio Manager
Matt Kirby
Portfolio Manager & Equities Analyst
Need more information?
For further information, please contact our investment sales team.
Equities views
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Multi-asset allocation views: Where next for markets after the summer storms?
9 Oct 2024
Volatility returned to markets in the third quarter of the year. While the short-term drivers are not unduly worrying, Sunil Krishnan argues multi-asset investors will need to be watchful over the medium term.
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Equity income megatrends: Four themes reshaping the landscape for income investors
9 May 2024
In this article, Richard Saldanha takes a look at four megatrends that are likely to transform companies and markets over the coming years, and how they might create opportunities for equity investors.
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Tech’s tightening grip: What rising US stock concentration means for equity investors
8 Apr 2024
Soaring technology share prices have driven US stock market concentration to unprecedented levels and pushed the US market to a record premium relative to other markets. While both trends could persist, investors need to be aware of the implications, argue Richard Saldanha and Joao Toniato.
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Pest control has become a growing priority for city residents and authorities all year round, as rising temperatures and other factors boost the populations of many pest species. But in creating adaptation solutions, the sector could also represent a long-term investment opportunity.
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From cash rich to cash strapped? Why the US consumer boom could run out of road
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Our investment teams explain why buoyant US consumer spending will have to weaken eventually. That could pose problems for debt-laden consumer-facing companies.
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The managers of the AIMS Target Return strategy explain why the prospects for a range of asset classes suddenly look much brighter.
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China versus the West:The ongoing rise of economic nationalism
2 Oct 2023
The US and China continue to trade blows as each side looks to limit the other’s access to vital products. With industrial policies also making a comeback, companies are having to navigate a rapidly changing business environment. We look at the key implications for investors.
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Multi-asset allocation views: Cutting through the noise
26 Sep 2023
Issues around US tech, China, US Treasuries and Japanese monetary policy have hit the headlines in recent weeks. Sunil Krishnan explains how taking a long-term view can help multi-asset investors cut through the noise.
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Tipping points and transformation: Getting on the right side of change
16 Aug 2023
Rapid changes in the global economy could tip some sectors into low-carbon phases faster than incumbents expect, with important investment implications.
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Defensive sectors offer value amid AI frenzy: What next for global equity income investors?
7 Aug 2023
Dividends proved resilient in the first half of 2023. Richard Saldanha considers what the rest of the year might have in store for income investors.
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Supercharge me: The power of network effects
5 Jul 2023
Network effects can boost a company’s growth and build durability – when combined with other strengths, argues Francois de Bruin.
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What does the data say? Three charts for multi-asset investors
19 Jun 2023
We take a visual approach to explain what’s happening with the US debt ceiling, LVMH and gold.
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Buy it or build it: Why innovation is key in healthcare
1 Jun 2023
Healthcare is a dynamic industry, but patent expiries from 2025 and drug-price reform in the US pose challenges. Innovation will be key for continued success, as experts from our credit, equity and ESG teams explain.
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Fragilities exposed as cheap money disappears
5 May 2023
Cracks have begun to emerge in the banking sector in recent weeks. As the tide of cheap money that has flooded financial markets for more than a decade ebbs, members of our investment teams are on the lookout for other signs of distress.
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Theory of reflexivity: How share prices can influence companies’ intrinsic value
12 Apr 2023
When markets fall, equity investors should become more constructive on the prospects for future returns. However, as prices fall, intrinsic value may be influenced. Discerning which factors drive this could help investors capitalise and avoid getting caught in value traps.
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Boom! Shake the gloom? Does China’s reopening mark a new beginning?
29 Mar 2023
China looks set for a rapid economic rebound in the first quarter after finally abandoning its zero-COVID policy. But will the recovery prove temporary as longer-term dynamics reassert themselves?