Trending with Institutional Investors
Global Equity
The articles on this page reveal the topics that are receiving the most traffic from investors inside RFPnetworksTerminal, within one sub-asset class.
Each article summarises the key themes that investors are researching based on their engagement with content and or their search queries for that topic. These can be early signals of portfolio changes or new searches.
Dividend Investing Strategies Reach Peak Popularity
Dividend Stock Characteristics Boost Portfolios
Dividend investing strategies and funds are getting popular. The current market environment provides many reasons for the recent comeback in dividends.
Dividend investing strategies are starting to regain their investor appeal in the current economic environment. Particularly amongst Private Banking clients. Here are the key reasons why:
- Global equity market performance is down around 25% year-to-date (as of 30 Sep 2022).
- 2023 Global economic growth is expected to drop to ~4%, which is one third less than 2021.
- Interest rates are rising across the globe in response to double digit and continuously rising inflation.
This data does not look supportive for traditional Growth Investing strategies. The popular fast growing growth stocks of the bull market relied on cheap easy money and strong macroeconomics. Both of which are currently out of stock globally.
Whilst value investing strategies have staged a strong comeback, the are fundamental differences with dividend investing strategies. These core differences suggest that the outlook for dividend stocks in the current volatile environment is where new money into the equity market may flow.
Growth strategies have long overshadowed dividend strategies. However, changing macroeconomic conditions have turned the tables and dividend investments are enjoying their time in the sun. While this coincides with value’s long-awaited comeback, value and dividend stocks have distinctive characteristics. We believe that dividends deserve to stay in a portfolio even when economic conditions improve. By adopting a fundamental approach to identify companies that can consistently pay and grow their dividends, investors could achieve long-term real return generation throughout the investment cycle.
Global Equity
While there are reasons to be both positive and negative about global equity markets, a more cautious case is gathering momentum. Inflation is now 8.5% year-on-year in the US, while GDP expectations are being revised downwards. Most cycles of tightening by the US Federal Reserve end in recession and this may be no different.
This article by Aegon AM's global equity income team explains why a dividend-focused global equity strategy is worth considering in such an uncertain environment.
GO DEEPER WIDER FASTER
RFPnetworksTerminal
For Manager Selectors
Bigger Data. Smarter Tools. Find the Best.
