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 exchange-traded funds (“ETFs”) that tend to pay dividends.
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
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.