When reviewing active funds investing in North America it is becoming increasingly harder to identify those that can beat the index. This fund is no different. The managers argue that the fund is designed to capture 90% of the upside and 78% on the downside. So they see this as a defensive strategy. With volatility not really being present in the US market this fund will naturally underperform. However, the managers believe that volatility is coming back into the market and that this should enable the fund to start to outperform.
They have a simple approach to investing. They look for those that not only pay a dividend but can grow them over time, those companies with strong management teams and those with quality franchises. An example of a company that they like is Verizon, who are the number one player in 5g. They have first mover advantage and are therefore seen as an industry disruptor….read more