Investec Asset Management has launched a global equities fund aiming to combine high returns with low volatility.
The Investec GSF Global Endurance Fund will be run by experienced duo Christine Baalham (pictured) and Nigel Hankin and will focus on high yielding global companies while avoiding the most volatile ones.
The new fund will draw from a universe of all global stocks with above average dividend yields, but will exclude all stocks in the top quartile in terms of volatility.
The fund will be part of Investec's 45-strong GSF Luxembourg-domiciled Ucits umbrella range and will draw on the firm's well established 4Factor investment process to analyse the stocks that come through in the initial screening.
The 4Factor process has been used by the group for over 12 years and is employed across many of the firm's global and regional equity portfolios.
Baalham joined Investec in 2000 and headed up the UK segment of the global 4Factor equity team. The group said she had been integral in transforming a predominantly fixed income focused group into to a more recognised equities player.
Investec's 4Factor process focuses on four key criteria when selecting stocks; strategy, value,earnings and technicals (share price momentum).
Speaking exclusively to Citywire Global, Baalham said:
'Our experience, supported by both academic literature and our own back tests, is that higher yielding stocks outperform over time as markets reward dependable businesses that return cash to shareholders and demonstrate good capital management.
'Additionally, in practice investors are not rewarded for taking the additional risk of owning more highly volatile shares, often referred to as “lottery” stocks as behavioural biases lead to over valuation of such names. Dependability has outperformed.'