search menu Home > Sanlam Investments > Our fund range EQUITIES Sanlam Sustainable Global Dividend Strategy We believe sustainability pays dividends The fund The aim A high conviction portfolio that aims to deliver growth in both income and capital over rolling five-year periods and a yield above the MSCI World Index through active ownership of companies that demonstrate strong dividend growth and compelling sustainability credentials. Dividend investing We prefer our companies to offer attractive dividend growth rather than a high dividend yield. The ideal dividend company can maintain their asset bases, reinvest in growth opportunities and pay dividends without excessive financial leverage or compromising their allocation of capital. Our dividend analysis therefore focuses on financial leverage and liquidity to help us identify the threats to future cash flows and dividend sustainability. Our dividend stress test highlights what scenarios might put the dividend at risk helping us identify companies that cannot afford their dividend. Sustainable credentials We focus on companies with strong sustainable credentials that are driving, facilitating, and promoting positive change – directly or indirectly – across a broad range of areas, from energy wastage, building emissions and power management to food waste, sustainable food diets and raw material depletion. Our proprietary Sustainability Scorecard forms the first part of our company analysis. If a company scores negatively we will not proceed with our research analysis. In addition, we exclude companies that derive more than 10% of revenues from the production or sale of tobacco, alcohol and weapons; adult entertainment; fossil fuel extraction and the provision of gambling services. Sections: 5 reasons to invest Philosophy ESG Investment process Fund commentary Sense and sustainability Related articles Fund literature Factsheet KIIDs Regulatory Fund information Meet the Sanlam Sustainable Global Equities Team Mark Whitehead Fund Manager View profile Alan Porter Fund Manager View profile Eva Kubicka Investment Analyst View profile Why invest in the fund? 5 reasons to invest Fund philosophy ESG Investment process Our dividend investing credentials - We aim to yield above the MSCI World Index and deliver real dividend growth each year Our sustainability credentials - Sustainability analysis is the first part of our research process. We do not invest in companies that fail our proprietary sustainability analysis Global diversification - We invest globally allowing us to choose the best sustainable global dividend companies wherever they are. High conviction, low turnover, low cost Robust and repeatable investment process - The 2 fund managers have a strong dividend track record and consistently high performance relative to the peer group. Global Equity Income 1 Yr 3 Yrs 5 Yrs NAV Securities Trust of Scotland Ord 5.49% 22.53% 75.31% Peer group Morningstar EU, Africa & Asia Open End Global Equity Income 1.36% 13.08% 65.13% Past performance is not a guide to future performance. The data above is cumulative and covers the periods to 11/11/2020 when the managers were managing the trust. They do not manage this trust anymore. Source: Morningstar as at 31/12/2020. All returns are cumulative, denominated in GBP We believe sustainable dividend investing leads to better outcomes for all stakeholders. Mark Whitehead, Fund Manager Fund Commentary Monthly Commentary Quarterly Update October 2021 Fund performance* MSCI World performance +6.68% +5.66% *USD Top 3 positive contributors Top 3 negative contributors Microsoft Capcom Merck Danone Home Depot AIA Group Buys Sells Capgemini Danone Mastercard Past performance is not a guide to future performance. Total return, NAV to NAV basis, net of charges, assumes net income reinvested. Dividend update JPMorgan paid a quarterly dividend of $1.00 versus $0.90 last year representing an 11% annual increase. The global investment bank has increased its annual dividend by $0.10 in each of the last few years and the stock now yields over 2.2%. Bank OZK is unusual in that, unlike most US companies, it raises its dividend each quarter rather than once a year. The real estate lender paid a $0.29 quarterly dividend an increase of over 5% versus last year. The stock yields over 2.5%. Caterpillar went ex a $1.11 dividend a near 8% increase versus last year. Caterpillar yields 2.1%. P&G declared a $0.8698 quarterly dividend an increase of 10% compared to a year ago. P&G has increased its dividend for 65 years in a row and yields over 2.4%. Sustainability update McDonald’s announced its commitment to achieving net zero emissions across its global operations by 2050 and signed on to the Science Based Targets initiative (SBTi). This will mean increasing the emissions reductions across their restaurants, offices and supply chain and enabling teams across the world to innovate and implement locally tailored solutions in renewable energy, regenerative farming, circular economy, and sustainable packaging. BlackRock’s Q3 results confirmed their leading sustainability ETF (exchange traded fund) provider status as they captured nearly 50% of the industry category inflows year-to-date. The company highlighted that in Europe, almost half of all industry flows are now going into sustainable ETFs, up from less than 10% just three years ago. Caterpillar announced that it is creating the position of chief sustainability and strategy officer as it looks to enhance its ESG activities. The company also announced that its Board will incorporate ESG in the 2022 incentive plan for executive officers. The Chairman and CEO, Jim Umpleby, said “Sustainability is an important element of our long-term strategy for profitable growth”. Schneider Electric’s SF6-Free Medium Voltage Switchgear was named Green Product of the Year at the Annual China CSR Conference is Guangzhou. SF6 (sulphur hexafluoride) is an extremely potent greenhouse gas used as an electrical insulator. Schneider has designed their switchgear product to replace SF6 with a combination of vacuum technology and pure air insulation. Apple flagged some of the efforts they are making in reaching carbon neutrality across the entire supply chain and the life cycle of devices by 2030. The iPad and iPad mini now come with a 100% recycled aluminium enclosure. The antenna on the iPhone 13 is made of up-cycled plastic water bottles. Eliminating outer plastic wrap on iPhone 13 packaging should save 600 metric tons of plastic. Apple target the removal of all plastic packaging by 2025. In the Apple Watch Series 7, 99% of the rare earth elements used are recycled. Apple target (in the long term) making products without taking anything from the Earth. Sense and sustainability A multitude of factors contribute to producing a more sustainable planet. Here we identify a selection of core issues and the companies we invest in to help address them for the better. Energy Wastage Power Management Buildings Emissions Food waste Problem: how to make energy management more efficient and resilient to help reduce waste and accelerate the journey to net-zero carbon emissions. Solution: Schneider’s EcoStruxure platform collects and analyses data and allows smart devices to make control decisions in buildings, plant and machines and on electricity grids. This technology allows customers to maximize energy efficiency and sustainability in their operations. Sustainability credentials: Schneider has been ranked on the CDP “A-List” for 9 consecutive years thanks for its actions in cutting emissions, mitigating climate risks and contributing to the development of a low-carbon economy. Raw material depletion Environmental consulting Bank lending practices Digital for carbon Problem: the consumer desire for natural ingredients can have the unintended consequence of depleting important natural resources. Solution: IFF uses green chemistry to find novel waste-reduction methods and biotechnical innovations to create natural products from abundant raw materials, rather than deplete important resources such as food. One example is their terpene-based chemistry which utilizes a pine-based side product from the paper industry to create high-performance fragrance ingredients. Sustainability credentials: IFF have Science Bases Targets initiative approved goals to reduce their absolute greenhouse gas emissions by 30% by 2025 (versus 2015 levels). They also have a Scope 3 goal to get their legacy suppliers representing 70% of their supply chain emissions to set targets and report annual emissions by 2025. Heating systems Renewable electricity Plastic pollution Fashion's effect Problem: the heating and cooling of buildings is estimated to contribute around 15% of global greenhouse gas emissions Solution: Trane Technologies is uniquely positioned with innovative solutions to lead the movement in reducing buildings emissions. Trane have designed an electric unit to heat and cool building with no need for a separate fossil fuel powered boiler. If powered by renewable electricity this is a zero emissions solution. Sustainability credentials: Trane is the first company in its sector to have their GHG emission targets verified by the Science Based Targets Initiative (SBTi). Explore the details A high conviction portfolio that aims to deliver sustainable income and long-term capital appreciation through investing in dividend paying companies. Read the latest factsheet Related articles INSIGHTS 19 November 2021 Greenhouse gas emissions – time for action Focus has increasingly shifted from setting 'net zero' targets towards action in meeting them. Here we discuss commitments to quickly reduce emissions and details of how these will be achieved. VIDEO 02 November 2021 Sanlam Sustainable Global Dividend Strategy - officially launching soon Sanlam Investments’ latest strategy is available to invest in soon: The Sanlam Sustainable Global Dividend Strategy. INSIGHTS 28 September 2021 Building a low-carbon world The speed of change demanded by the climate emergency is an abnormally complex challenge for capital markets. But they are adapting and transforming. Read all Fund Risks Past performance is not a guide to future performance. Do remember that the value of an investment and the income generated from them can fall as well as rise and is not guaranteed, therefore, you may not get back the amount originally invested and potentially risk total loss of capital. A table with five years’ performance is available in the fund factsheets. The Fund has holdings which are denominated in currencies other than sterling and may be affected by movements in exchange rates. Consequently the value of an investment may rise or fall in line with the exchange rates. Deemed authorised and regulated by the Financial Conduct Authority. The nature and extent of consumer protections may differ from those for firms based in the UK. Details of the Temporary Permissions Regime, which allows EEA-based firms to operate in the UK for a limited period while seeking full authorisation, are available on the Financial Conduct Authority’s website. (Notes 1, 3 and 4). Ready to invest? 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