German asset manager DJE Kapital has launched a new equity fund aimed at capitalising on buybacks and dividend payments.
The new fund will focus on quality stocks with long term structural growth prospect, irrespective of sector, region or market capitalisation. It aims to offer investors an annual return of 5 percent of its net asset value. The fund offers a share class for retail and one for institutional investors.
Philipp Haas, fund manager in charge of the Buyback & Dividend fund comments: “We select stocks based on a four stage screening process considering quality, value, momentum and behavioural economics as factors.Using our in-house models,we have the opportunity to direct individual positions of the fund with respect to quality and growth in order to direct an optimal valuation.”
As a result of its focus on buybacks and dividends, the fund’s portfolio is currently concentrated in financial services, which make up 23.51% of its portfolio, and tech stocks, covering 22.71. About a third of its portfolio is invested in German stocks, followed by US, China, Italy and Finnish firms.