Sarasin Systematic EM Dividend Fund
An emerging market portfolio which offers broad diversification, and seeks to outperform the market cap benchmark over the medium to long term.
The fund is a fully invested, systematic, long-only equity strategy.
It provides core exposure to emerging markets and is designed to maximise risk-adjusted returns over the long term.
Using a simple and transparent process tailored to your requirements, the fund has consistently produced a higher Sharpe Ratio across multiple markets and cycles. It can be applied to single country, as well as regional indices.
We use the World Bank’s governance scores to inform our underweights and overweights. This provides our investors with a responsible overlay to asset allocation.
There are four pillars which are core to stock selection:
- Dividend growth
- Dividend yield
- Fitting the Sarasin Efficient Ratio
The latter ratio is our proprietary technique that blends momentum and low volatility signals.
The strategy follows a rules-based investment process and rebalances on the first working day of each month.
To be part of the target investable universe a company needs to be a member of the MSCI Emerging markets index and ranked in the top 80% for liquidity.
For portfolio construction the managers use a tilted approach.
- Active stock weighting constraints
- Active country level constraints
- Active sector level constraints
- Dividend yield 25% premium to market