Overview
Overview
Epoch Investment Partners, Inc. (“Epoch”) seeks to provide a high level of income by investing in a globally diversified portfolio of stocks with a history of attractive dividends and positive growth in free cash flow, which may be used to pay future dividends.
Focus on cash flow
invests in companies with a history of generating free cash flow, and management teams committed to using that cash to increase shareholder value.
Well-diversified, global portfolio
Invests in equities of various market capitalizations from around the world, with a focus on companies that pay dividends, buy back stock and reduce debt.
Risk management helps lower volatility
The team employs a comprehensive risk management discipline designed to limit security and portfolio level risk.
Buy/Sell Disciplines
Buy
• Rank for key metrics
• Proprietary quantitative research
• In-depth fundamental analysis
• Risk management
Sell
• Interruption to dividend policy
• Deterioration of fundamentals
• Valuation concerns
• Opportunity swaps
Philosophy
Philosophy
Epoch’s Global Equity Yield strategy pursues attractive total returns with an above-average level of income by investing in a diversified portfolio of global companies with strong and growing free cash flow. Companies in the portfolio possess managements that focus on creating value for shareholders through consistent and rational capital allocation policies with an emphasis on cash dividends, share repurchases and debt reduction — the key components of shareholder yield.
Process
Process
Epoch utilizes an investment discipline that combines bottom-up stock research with top-down analysis. The investment team analyzes companies, regardless of domicile, based on in-house research, similar to the approach taken by private investors. They invest in businesses they understand, that meet their strict Free Cash Flow criteria, possess high dividend yields, and that can be purchased at an attractive price.
In determining the risk/reward profile of a company, Epoch may evaluate the sustainability of the company's business, the company's earnings drivers, barriers to entry for potential competitors, the quality and character of the company's cash earnings, and the likelihood of the company's management to use free cash flow to enhance shareholder value, among other factors.
The portfolio is comprised of global stocks exhibiting strong free cash flow growth and providing for high dividend yields. Generally, the portfolio holds between 90 and 120 stocks from equity markets worldwide, with risk controls to diversify the sources of shareholder yield and minimize volatility.
Team
Team
Global equity manager with a distinct perspective on the long-term drivers of shareholder return.
Global asset management firm that manages U.S., non-U.S. and global equity strategies for institutional and intermediary clients; their investment strategy is based on fundamental research and seeks to invest in companies that can grow free cash flow and allocate it effectively for the benefit of shareholders.
