U.S. Small Cap Income

Summary

TARGET

Tracking Error 4.0% - 6.0% over a standard market cycle
Excess Return 2.0% - 3.0% over a standard market cycle

INVESTMENT TEAM

Jeff John, CFA

Ryan Cope, CFA

4 Investment Analysts

1 Client Portfolio Managers

Documents & Resources

 

The strategy seeks to invest in small-cap, income-producing companies temporarily selling at a discount.

  • High-quality yield. Derived from a unique and holistic approach to measuring quality, the portfolio aims to generate income of 100-200 basis points higher than the benchmark index while seeking lower volatility as well.
  • Growth in income.  The team invests in small cap stocks that have exhibited high dividend growth and accelerated earnings growth prospects.
  • Return potential and diversification.  The portfolio strives to deliver both income and capital appreciation typically inherent in small caps. Improved sector and stock selection aims to provide greater diversification than many large cap, income-oriented strategies.

Availability

Investment capabilities are available to institutional clients through separate accounts, sub-advised portfolios and commingled vehicles. Please contact us for availability in your region.

Performance

*Annualized

High-quality companies are typically those that exhibit high, stable and sustainable returns on capital, attractive free cash flow generation, low financial leverage, and franchise sustainability.

Sources: Frank Russell Co., FactSet

Portfolio managers are not licensed by the Hong Kong Securities and Futures Commission to perform any regulated function in or from Hong Kong. Furthermore, none of the portfolio managers are located in or operate in or from Hong Kong.

Data reflects past performance. Past performance does not guarantee future results. The value of investments may fluctuate. Data assumes reinvestment of dividends and capital gains.

The Russell 2000® Index is a trademark/service mark of the Frank Russell Company. Russell® is trademark of the Frank Russell Company.