GDVD is actively managed, investing in dividend-paying equity securities. The advisor uses quantitative screens (such as dividend yield, return on invested capital, free cash flow, and revenue growth metrics), followed by qualitative, bottom-up research on both an industry and a company level to identify companies that it believes have the commitment and capacity to pay dividends and whose potential growth of capital is expected to be above average, according to regulatory filings.
R Cubed acquired the fund and its portfolio manager, Cliff Remily, from Principal. While the name of the fund has been modified, the strategy has remained the same. The fund carries an expense ratio of 88 basis points.
GDVD aims to provide current income through dividends. At the moment, stock dividends are taxed more advantageously than bond coupons and interest on bank deposits, according to the firm. The fund actively pursues companies that the advisor believes has the willingness and ability to pay and grow their dividends over time.
GDVD offers diversification in the way that it identifies the best opportunities. The managers will consider stocks of any size, and are agnostic as to whether they are growth or value, according to the firm.
The portfolio manager, Remily, has been managing portfolios for both growth and income for nearly 20 years, bringing vast experience and expertise to the strategy.
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