UK Equity Income: a passion for dividends

In this article we explore the origins of a systematic UK Equity Income strategy now powered by Elston’s Minerva™.

Dividend investing: how to invest for equity income

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UK Equity Income: a passion for dividends

The VT Munro Smart-Beta UK fund is a monthly income fund powered by Elston's Minerva™: our proprietary suite of quantitative tools, screens and methodologies to build targeted and systematic investment solutions.

Whereas traditional indices weight companies by market capitalisation, the Elston Smart-Beta UK Dividend Index weights companies by their forward-looking dividend contribution.  This targeted yield-factor focus helps underpins returns.  This methodology focuses on dividend compounding as a source of persistent returns.  What it delivers is:

• Monthly income from ~200 dividend contributors
• Systematic, rules-based selection process resulting in top quartile performance
• Total returns comfortably ahead of peer group
  
  

“In volatile times like 2022 and now with the correction in the US, the staying power of dividend compounding really shows its colours.” - Rob Davies, UK Equity Income Index Specialist at Elston Consulting.

Read the full interview in Institutional Asset Manager