Value is more than a number …
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The Dividend Fund is an actively managed portfolio of global high yield equities. The Portfolio Managers embrace Setanta's value investment philosophy, seeking to pick stocks at a price below the managers’ assessment of intrinsic value. The Fund further distils this philosophy by targeting stocks where management have both the willingness and ability to distribute meaningful dividends to shareholders. The rationale for the Fund is underpinned by studies (e.g. Dimson, Marsh and Staunton, 2011) that show dividends have played an important role in the cumulative total return of equities over the past century, while other academic studies support the thesis that a high dividend yield is an excellent indicator of value.
While the Fund does not target specific regional or sector weights, the managers seek to maintain a sensible level of diversification. Risk is minimised by focusing on valuation, financial and operational risk measures and therefore the degree of downside protection, rather than focusing on measures of market volatility or beta. The Fund usually holds between 35 to 45 stocks with expected holding period of approximately 5 years. Exposure to local currencies is limited, as the Fund is mandated to hedge most of its exposure back to euro.
The investment objective of the Fund is to generate a return above the general return of equities over rolling periods of three years or more – this is measured by reference to the total return of the MSCI World High Yield Index (90% local, 10% Euro).
| 1 month | YTD | 1 Year | 3 Year p.a. | 5 Year p.a. | 10 Year p.a. | |
| Fund | 2.0% | -2.4% | -2.4% | 12.0% | -1.9% | N/A |
| Benchmark | 3.2% | 4.8% | 4.8% | 11.9% | -2.1% | N/A |
| 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | |
| Fund | 16.9% | -4.8% | -32.0% | 27.2% | 13.0% | -2.4% |
| Benchmark | 19.4% | 1.2% | -36.6% | 25.0% | 7.0% | 4.8% |
| Company | Sector | % of Fund |
| CRH | Industrials & Materials | 3.6% |
| MEDTRONIC | Healthcare | 3.6% |
| SANOFI | Healthcare | 3.5% |
| LOCKHEED MARTIN | Industrials & Materials | 3.3% |
| NOVARTIS | Healthcare | 2.9% |
| MICROSOFT | Information Technology | 2.8% |
| DIAGEO | Consumer Staples | 2.8% |
| KIMBERLY-CLARK | Consumer Staples | 2.7% |
| PFIZER | Healthcare | 2.7% |
| ASTELLAS PHARMACEUTICAL | Healthcare | 2.6% |
| Sector Name | Fund Weight |
| Consumer Discretionary | 5.3% |
| Consumer Staples | 10.4% |
| Energy | 10.9% |
| Financials | 11.7% |
| Healthcare | 18.3% |
| Industrials & Materials | 16.1% |
| Information Technology | 6.6% |
| Telecoms & Utilities | 20.6% |
Paul McNulty, CFA has been with Setanta since 2000, having spent just under two years with PricewaterhouseCoopers as a consultant. He is a dedicated proponent of the value investment philosophy and continues to develop his knowledge through both formal education and practical experience. Paul’s sector specialty is Global Consumer Staples and he is part of the High-Yield team. Paul also has extensive experience in the field of derivatives, successfully managing overwriting funds for several years. He has a BSc in Finance from Queens University Belfast (1997) and an MSc with distinction in Finance from Queens University Belfast (1998). He is a CFA Charterholder and a member of the Irish branch of the CFA Institute.
Richard Doyle, CFA joined Setanta in 2008. He co-manages Setanta’s various income-oriented portfolios, including the Dividend Fund, Income Opportunities Fund and Reditus. Richard is also responsible for management of the Global Energy sector within the Global Equity Fund. He began his career in 2000 as a trainee fund manager at Scottish Investment Trust. Prior to joining Setanta, he worked at Bank of Ireland Asset Management as an equity manager and senior analyst. Richard has a B.A. in Economics from the University of Dublin, Trinity College and has been a CFA Charterholder since 2003.
David Pastor joined Setanta Asset Management in 2007. He has 4 years experience in the asset management industry, the last 2 on an analyst/fund manager capacity. He has a BS in Business Administration from Universidad de Burgos and is a member of the Association of Chartered Certified Accountants (ACCA). David is also a candidate in the CFA program.
Performance Source: Setanta Asset Management Limited. Benchmark: MSCI World High Yield Index (90% local, 10% Euro) & Bloomberg. The Fund returns (in Euro) since 30.09.07 are based on the movements in the unit prices of a representative account, based on mid to mid prices, and are gross of management fees. The unit prices prior to this are derived from a net of fee price, adjusted for the management charge to be representative of the gross of fee performance.
The Dividend All-Equity Fund is managed by Setanta Asset Management Limited and is a representative account of the Dividend strategy. The Fund is currently available in Ireland via a unit-linked offering of Canada Life Assurance (Ireland) Limited. It is also available in Germany, via a unit linked offering of Canada Life Assurance Europe Limited. For these life assurance products, investors should refer to the relevant policy conditions. The strategy is also available on a segregated basis to institutional investors.
WARNING: Past performance is not a reliable indicator of future results. The price of units and the income from them may go down as well as up and investors may not get back the amount invested. The return may increase or decrease as a result of currency fluctuations. Forecasts are not a reliable indicator of future performance.
