Investment Objective

To deliver long term dividend growth and capital appreciation. The performance target is to exceed the MSCI All Country World ex Australia Index by 2.5% p.a. after fees on a rolling five year basis.

Primary Investments

60 to 100 leading global companies from developed and emerging markets with a minimum stock capitalisation of US$2 billion.


Bottom up, Fundamental (focus on building long term wealth with low turnover).

Investment Philosophy

The investment philosophy at Dundas Global Investors (‘DGI’) is founded on four fundamental tenets:

  • Long term returns from global equities will beat inflation, bonds and cash.
  • Through investment in global companies with strong and sustainable returns on equity and a growing dividend stream, the needs of both compounding and consuming savers can be met.
  • In the accumulation phase compounding and reinvestment of dividends is the key to generating superior long term returns. In the drawdown phase the key is a diversified portfolio with a focus on capital preservation and a predictable and growing income stream.
  • A ‘clean sheet’ approach to building an investment firm has resulted in a number of sustainable competitive advantages; a lower cost base, use of technology to enhance the productivity of the research effort, and no legacy systems or strategies to distract the investment team.


DGI refine their opportunity set, to screen out stocks which lack the wealth and cash generation characteristics they seek, to a list of approximately 300 – the ‘Green List’. Stocks with inadequate margins, poor balance sheets, low cash generation and deteriorating business trends are eliminated.

DGI conduct a positive screen to build the final portfolio based on:

  • Best operating margin cascade
  • Best balance sheet margin cascade
  • Sustainability of cash flow growth
  • Valuation relative to cash flow prospects.

The goal is to build a portfolio capable of sustainable, long term wealth generation delivered in the form of stable dividends and capital growth. Dundas decomposes the components of total return and manages both elements for maximum long term benefit to its clients. The final portfolio is highly diversified and benchmark unaware and the principal portfolio valuation tool is dividend yield.

Portfolio Fit

The strategy would suit clients looking to build equity portfolios in high quality names, growing companies, and above average dividend growth. The portfolio would also fit as an income orientated, low beta diversifier to an existing global equity allocation.



Management Fees

Available upon Request.


Segregated mandate and pooled vehicle.

Investment Manager

Dundas Global Investors (Dundas Partners LLP).

Portfolio Team

Alan McFarlane, Russell Hogan, James Curry, Gavin Harvie, Katie Muir.