Investec Global Quality Equity Income is an unconstrained all-cap Global Income mandate that focuses on quality companies able to deliver persistent growth through competitive advantages. As the macroeconomic environment is not factored into their investment decisions, the companies held within the portfolio must have very low sensitivity to the economic and market cycle. The managers believe that income generated by quality companies is more durable and faster growing than other sources of equity income.
What we like about the companies within the portfolio is that they have sustainably high returns on capital, strong cash generation that can be returned to shareholders, and require a low level of capital to operate. We also like the focus on companies with dominant intangible assets as this raises the barriers to entry and makes it difficult for competitors to duplicate.