Global Equity Income – Keeping the faith

Global Equity Income strategies have been popular with investors for many years, however they generally have not performed well versus the MSCI World index over the past three years in particular. What has caused a strategy which has historically delivered modest outperformance and lower than average market volatility to struggle in recent years? We think it is necessary to take a couple of steps back and understand both the issues that have driven stock and sector performance since the global financial crisis, and how we as investment professionals seek to generate ongoing sustainable equity income and an attractive total return.