Global Equity Income
By harnessing the power of dividends, The Redwheel Global Equity Income team aims to deliver a combination of income and long-term capital growth through investing in a diversified portfolio of global equities. It is designed for investors seeking a disciplined approach, targeting a rare combination of premium yield, durable income and attractive valuation, while selectively investing in overlooked opportunities where short-term controversies have created potential mispricing.
Three core disciplines
Our strategy combines three distinct investment disciplines:
Premium yield
we invest only in stocks that yield at least 25% more than the yield on the global market.
Dividend durability
we target businesses with robust cash flows, strong balance sheets and business models that can withstand periods of stress.
Valuation margin of safety
we focus on undervalued companies where long-term cash generation and dividend potential are not fully recognised by the market.
Dividend-led investment approach
Our investment approach is focused on harnessing and enhancing the most statistically significant source of long-term returns: the compounding of dividends through time. The strategy applies an objective yield discipline which differentiates it from its peers, with every stock expected to compound at a higher yield than that of the market.
Embracing controversy
We believe the most attractive income opportunities often arise when companies face temporary controversy. While each of our investment criteria can be found individually, they rarely exist together without some form of market concern.
Our process focuses on identifying whether these issues are short-term (creating investment opportunity) or structural (to be avoided), allowing us to uncover mispriced stocks.
Our strategies
Global Equity Income
A strategywith an aim of providing a combination of income and long term capital growth by investing primarily in a portfolio of global companies.
Redwheel Responsible Global Income
A strategy designed to deliver a combination of income and long-term capital growth by investing primarily in a portfolio of global companies through a responsible-investing lens.
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Latest insights
Nick Clay, Portfolio Manager for the Redwheel Global Equity Income team, explores why Compass Group is an excellent example of how AI-driven indiscriminate selling can create value opportunities in best‑in‑class companies, and how the Global Equity Income strategy is designed to exploit this kind of disruption.
In his recent insight, Nick Clay argues that today’s pickup in inflation, AI disruption and private markets stress signals a return to historically normal, higher volatility. He explains why consistent compounding, downside protection, resilient cash flows and valuation discipline are crucial to turning volatile markets from a risk into an opportunity.
Is ‘Quality at any price’ still a viable investment strategy amid widespread corporate disruption? For Nick Clay, Portfolio Manager, Redwheel Global Equity Income, shortening corporate lifespans, relative underperformance of Quality stocks and sudden re-ratings of AI ‘winners’ all suggest otherwise. A disciplined focus on yield, valuation and controversy is now critical to investing in durable Quality in the age of AI.
Meet the team
Nick joined Redwheel in 2020 and leads the Global Equity Income team.
Robert is Co-Portfolio Manager of the Redwheel Global Equity Income Team.
Colin Rutter is an Analyst in the Redwheel Global Equity Income team and has two decades of experience in investments.
Katherine Velasquez Rodriguez joined Redwheel in 2022 and as an Analyst in the Global Equity Income Team in 2024.
No investment strategy or risk management technique can guarantee returns or eliminate risks in any market environment.