The Portfolio has as its primary objective the achievement of attractive dividend income coupled with long-term growth of capital, primarily through investment in a portfolio of equity or equity-related securities of companies with operations in emerging market economies.
The Guardian Emerging Markets Dividend Growth Strategy employs a system-driven bottom-up research approach to assess relative value and capital growth potential within a broad stock-selection universe. We use a quantitative approach to analyze multiple fundamental factors and incorporate financial data and other information sources relevant to the issuer, including rates of change of fundamental factors. We seek out companies that have potential for both capital growth and sustainable dividend yield. Through the integration of Artificial Intelligence in our models we use machine learning techniques to further our ability to forecast dividend growth for companies as well as forecasting the probability of dividend cuts. These factors are normalized, ranked, and then combined with the relative, Intrinsic and big data factors to come up with a composite score for each stock. In making our final assessment, we place particular focus on dividend growth and dividend quality. The strategy maintains a broad diversification by issuer, sector and geographic region.