GLOBAL DIVIDEND STRATEGY
Concentrated portfolio of companies committed to rewarding shareholders through sustainable and growing dividends, delivering a dividend growth rate of 10% annually
In the current environment, investors need to make every penny work for them. With yield in short supply and safe income streams providing little return, high quality companies with growing and sustainable cash flow from across the globe might be less risky than you think – and more fruitful. Over the long run, dividends matter, and dividend growth investors have outperformed. *
The Blue Current Global Dividend Strategy utilizes its investment expertise in growing cash flow through what we believe is a niche universe of high quality, dividend-paying companies with sustainable business models and dividend policies. The primary objectives are to pay a stable and increasing dividend each quarter and deliver attractive long term capital appreciation to investors.
The Blue Current investment team concentrates on a select portfolio of 25-50 companies across developed markets that meet our stringent qualities. We focus on companies that we believe have a strong history of rewarding shareholders and have the financial ability to continue to increase the dividend over time. We also focus on the future earnings potential of each company and strive to purchase those businesses when they are trading at a discount to their true value.
Why Do Dividend Growers Outperform?
“Do you know the only thing that gives me pleasure?
It’s to see my dividends coming in.”
JOHN D. ROCKEFELLER
Blue Current Global Dividend Strategy
The Blue Current Global Dividend Strategy (the “Strategy”) seeks current income and capital appreciation by investing in dividend-paying equity securities of companies whose stock are selling at discounts to the Adviser’s estimate of their intrinsic value. The Strategy invests primarily in domestic and foreign equity securities such as common and preferred stock that are currently paying dividends. The Strategy may also invest in publicly traded master limited partnerships (“MLPs”) and exchange-traded funds (“ETFs”) that tend to pay dividends. Under normal circumstances, the Strategy will invest at least 80% of its net assets in equity securities that either have paid a dividend in the 12 months prior to purchase, or are expected by the Adviser to pay a dividend within 12 months following purchase.
An MLP is a limited partnership, the securities of which are traded on a public exchange or in the over-the-counter markets, that is eligible for special tax treatment under the Internal Revenue Code of 1986, as amended (the “Code”). To qualify as an MLP, the partnership must receive at least 90% of its income from certain qualifying sources, including real estate, commodities or natural resources. The Adviser believes that MLPs are an efficient way to gain portfolio exposure to such asset classes.
In selecting investments for the Strategy, the Adviser seeks out companies that the Adviser believes are undervalued, high-quality dividend paying equities with a commitment to dividend growth and pay above-market dividend yields. The Adviser considers such factors as dividend sustainability, balance sheet quality, growth characteristics and valuation when selecting investments for the Strategy. Throughout this process the Adviser applies fundamental, “bottom-up” analysis when selecting investments for the Strategy. This analysis focuses on the specific attributes of each company rather than the industry in which the company operates or the economy in general.
The Strategy seeks to have a diversified portfolio by issuer, industry, and country. The Strategy will invest, under normal market conditions, in at least three different countries, one of which will be the United States, and invest at least 40% of its assets in foreign securities or, if the Adviser determines conditions are not favorable, invest at least 30% of its assets in foreign securities. There are no restrictions as to the market capitalization of companies in which the Strategy invests. Under normal market conditions, the Strategy will generally hold securities of between 25 and 50 companies.
The Strategy’s investment in foreign securities may include investing in foreign securities that trade on foreign exchanges, investing in American Depositary Receipts (“ADRs”) listed on U.S. stock exchanges or investing in ETFs that invest primarily in foreign securities. ADRs are depositary receipts generally issued by a bank or other financial institution and represents an ownership interest in the common stock or other equity securities of a foreign company. The Strategy’s investments in foreign securities will primarily be in companies in developed countries.
A security may be sold when the security reaches its intrinsic value as determined by the Adviser, the Adviser has identified a more attractive security, or the security no longer meets the Adviser’s dividend-paying criteria.