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Sanlam Investments opens global dividend fund to external investors

Dividends_screenSanlam Investments has opened the Sanlam Global Dividend fund to external investors, with £200 million of internal money already in the fund.

The fund, which recently received Article 8 approval under the Sustainable Financial Disclosure Regulation, is managed by Mark Whitehead and Alan Porter, who joined the firm from Martin Currie in December 2020.

The managers seek to invest in companies with “attractive dividend growth” and which demonstrate “sustainable leadership”, and excluded companies with more than 10% exposure to alcohol, tobacco, weapons, adult entertainment, and fossil fuel extraction.

Whitehead said: “Societal shifts demonstrated by events over the past couple of years have put climate change and sustainability at the top of the agenda for all. It’s an opportune time for funds focusing on the best sustainable, dividend-paying companies; and we mean sustainable in both senses of the word."

The managers conduct preliminary dividend and sustainability analysis to narrow down their universe of 500 stocks to an approved list of around 50 companies, of which they will own 25 to 40 in the fund.

Power management, buildings emissions and nutrition are current themes of interest.

“We are seeing promising signs of strong dividend growth and company cash flows and balance sheets are strong. We expect in the region of 7% DPS growth over the next few years, at the portfolio level,” added Whitehead.

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