US Income Stock

This strategy is offered by Newton Investment Management Ltd (‘NIM’). This strategy may be managed by an affiliate of NIM and may apply a research process that differs from that applied by NIM.

Strategy overview

We seek to outperform the US large-cap equity market while offering a dividend yield more than 50% above that of the S&P 500® Index. The strategy is managed by an experienced and well tenured team whose interests are aligned with our clients.

The US Income Stock strategy offers a balanced approach between dividend yield and dividend growth, augmented by a valuation-sensitive process. The strategy seeks attractively valued companies with solid fundamentals and business momentum and aims to capture both income and capital appreciation.

Learn more about our multidimensional investment philosophy

Strategy profile

Objective: The objective of the US Income Stock strategy is to outperform the S&P 500 Index while delivering at least a 50% dividend yield profile versus the primary benchmark over a full market cycle.
Benchmark: S&P 500® Index

The S&P 500® Index performance benchmark is used as a comparator for this strategy. The strategy does not aim to replicate either the composition or the performance of the performance benchmark.
Strategy inception: 1 April 2011

Investment team

: The strategy is managed by an experienced team. In-house research analysts are at the core of our investment process, and our multidimensional research capabilities span fundamental, thematic, responsible investment, quantitative, geopolitical, investigative and private-market research to promote better-informed investment decisions.

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John C Bailer

Deputy head of equity income, portfolio manager

Brian Ferguson

Portfolio manager, Equity Income team

Keith Howell Jr.

Portfolio manager, Equity Income team

Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.

Key investment risks

: Objective/performance risk: There is no guarantee that the strategy will achieve its objectives and a capital loss may occur.

Geographic concentration risk: The strategy primarily invests in a single market which may have a significant impact on the value of the strategy.

Concentration risk: A fall in the value of a single investment may have a significant impact on the value of the strategy because it typically invests in a limited number of investments.

Real estate investment trust (REITs) risk: The strategy is subject to risks associated with investing in real estate which may include but is not limited to liquidity constraints arising from difficulties with the disposal of the underlying properties, fluctuations in the value of underlying properties, defaults by borrowers or tenants, market saturation, changes in general and local economic conditions, decreases in market rates for rents, increases in competition, property taxes, capital expenditures or operating expenses and other economic, political or regulatory occurrences affecting companies in the real estate industry.

Investment in infrastructure companies risk: The value of investments in infrastructure companies may be negatively impacted by changes in the regulatory, economic or political environment in which they operate.

Capital depreciation risk: The strategy undertakes investment activities that are designed to maximise the generation of income. This may result in a reduction of capital.