Overview
Overview
Epoch Investment Partners, Inc. (“Epoch”) seeks to provide a high level of income by investing in a 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.
Philosophy
Philosophy
Epoch believes the growth and applications of free cash flow represent the best predictors of long-term shareholder return, and that companies maximize returns through disciplined capital allocation.
- A company should reinvest capital if the expected return on invested capital is greater than the company’s cost of capital
- Remaining free cash flow should be returned to shareholders via shareholder yield
Process
Process
Epoch’s U.S. Equity Yield strategy pursues attractive total returns with an above-average level of income by investing in a diversified portfolio of U.S. 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. The portfolio generally holds between 75 and 120 stocks from equity markets worldwide, with risk controls to diversify the sources of shareholder yield and minimize volatility.
Team
Team
Epoch Investment Partners
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.
