The Hamlin High Dividend Equity UCITS Fund seeks high current income and long-term capital appreciation. The fund’s managers seek to identify and invest in dividend-paying equity securities of companies that in their opinion are undervalued in the market.
The investment objective of the Fund is to achieve a high level of current income and long-term capital appreciation. Hamlin believe that a healthy and consistent dividend policy enhances investor total return, endorses historic accounting statements, and acts as an effective governor on capital allocation. Additionally academic research shows that dividend stocks have historically outperformed the market with lower volatility.1 Accordingly, the Fund focuses on stocks with dividend yields 1.5x that of the S&P 500 index yield. Within this high income universe, Hamlin searches for companies with manageable debt, ample free cash flow and attractive returns on equity. While the strong balance sheet and dividend discipline generates mostly large company holdings, the Fund invests in all capitalizations. Hamlin is particularly interested in high dividend-yielding stocks with strong balance sheets that Hamlin believes are under-followed by other managers and Wall Street analysts.
The Fund seeks to implement its investment objective by investing in dividend-paying equity securities of issuers located throughout the world, including the United States. Under normal circumstances, the fund will invest at least 80% of its net assets in equity securities. The equity securities in which the Fund invests are primarily common equity stocks, preferred stocks and American Depositary Receipts but may also include shares of real estate investment trusts ("REITS”), units of Collective Investment Schemes ("CIS") and interests in Master Limited Partnerships ("MLPs").
1 Kenneth French, Roth Family Distinguished Professor of Finance at Tuck School of Business at Dartmouth; "Portfolios Formed on Dividend Yield”Hamlin Capital Management Website