GQG Partners launches income strategy
Boutique investment firm GQG Partners has launched its Global Quality Dividend Income strategy in Australia after it secured an investment mandate of A$125 million from an Australian financial institution.
GQG manages global and emerging market equities for institutions, advisers and individuals worldwide and seeks to invest in high-quality dividend-paying companies with attractive future growth prospects. The investment team is focused on the liquid securities of large-cap issuers in both developed and emerging markets.
“Utilising our forward-looking quality approach, we saw an opportunity to provide a differentiated income product,” Rajiv Jain, Chairman and Chief Investment Officer of GQG Partners, said.
“Our focus is on identifying quality businesses that have the ability to grow revenue as well as provide a steady dividend income stream over time. We believe this approach should help our clients protect on the downside during periods of market volatility and compound their wealth over the long run.”
Laird Abernethy, Managing Director Australia and New Zealand of GQG Partners, said the strategy will meet the needs of Australian investors who are seeking a regular and stable income option at a time of historic lows for interest rates.
“In conversations with institutions, superannuation funds and advisers in Australia, it is clear there is substantial demand for investment options that can deliver income while looking to reduce downside risk,” he said.
“We believe that an income strategy that is derived from GQG Partners’ strong focus on quality will be an attractive option for Australian investors.”
The firm’s investment process assesses each business that forms part of the strategy based on financial strength, sustainability of earnings growth and quality of management. The strategy will also manage downside risk while providing capital appreciation, dividend income and returns to long-term investors over a full market cycle.