Skip to content
Save
Active Equity

Quality Dividend Focus Defensive

Designed to deliver an elevated dividend yield relative to the broad market while taking a defensive portfolio approach and investing in high quality companies to further enhance income consistency and stability.
Our Philosophy
We believe investors should be compensated for the risks they take — in all market environments and any investment strategy.

Overview

Quality That Pays Dividends

Investors trying to enhance their portfolio income in the equity market may be exposing themselves to undesired risks, such as large sector concentrations, or too much overall risk. This strategy seeks to deliver more consistent outcomes by taking a more defensive approach and targeting high-quality, high-dividend paying companies while controlling for undesirable portfolio risks.
Benefits
Seeks Steady Growth through Attractive Risk-Adjusted Returns
High Dividend Yield, Targeting Up to Twice the Benchmark Yield
Cost-Effective Active Management

This is a carousel with slides. Use Next and Previous buttons to navigate.

Slide 1 of 3
Principles of Investing

Focus on Persistent Sources of Excess Return

Our strategies target systematic sources of excess return that have been proven over long periods.

1 / 3

Principles of Investing

Seeking to Improve Risk-Adjusted Returns by Integrating a High-Quality Foundation

The inclusion of a proprietary quality factor roots our security selection process in strong company fundamentals and has shown to potentially improve risk-adjusted returns over time.

2 / 3

Potential Improvements in Sharpe Ratio for Factor-Mimicking Portfolios Driven by Addition of the Quality Factor

Source: Morningstar, Northern Trust Asset Management.December 31, 1996 to June 30, 2023. Past performance is no guarantee of future results. Index performance returns do not reflect any management fees, transaction costs, or expenses. It is not possible to invest directly in any index. Indexes are the property of their respective owners, all rights reserved.

Principles of Investing

Utilize a Systematic Approach to Maximize Efficiency

Generating excess returns is important but risk and cost effectiveness are critical. We believe utilizing a systematic investment approach enables our strategies to seek to deliver on all three objectives consistently.

3 / 3

A Systematic Approach Maximizes Efficiency

Past performance is no guarantee of future results. Index performance returns do not reflect any management fees, transaction costs, or expenses. It is not possible to invest directly in any index. Indexes are the property of their respective owners, all rights reserved.

This is a carousel with slides. Use Next and Previous buttons to navigate.

Slide 1 of 4
How it works

Target Quality and Income

Rank and select companies with high quality characteristics, eliminate non-dividend payers.

1 / 4

How it works

Establish Risk-Controls That Limit Unrewarded Exposures

Maintain benchmark weights on regions and sectors, where taking active risk often doesn’t pay off.

2 / 4

How it works

Construct a Portfolio That Targets Yield and Quality in a Controlled Manner

Balance risk, return, dividend yield, quality and transaction costs.

3 / 4

How it works

Optimize Portfolio to Key Objectives

A final stringent review and optimization is conducted to verify the portfolio maximizes exposure to high quality and high income characteristics and seeks to minimize any excess risks that don’t contribute to outperformance.

4 / 4

Who it's for
Investor Seeking a Defensive Portfolio Approach
Diversification across the investment universe designed to add value over full market cycles.
Investors Seeking Equity-Based Portfolio Income
Strategy targets yield of 1.5x – 2.0x the benchmark.
Investors Seeking Cost-Effective Active Management
A systematic approach enables us to target key sources of portfolio outperformance, in a cost‑effective manner.

Literature

Quality Dividend Focus Defensive Documents

Related Products

Quality Large Cap Core

Designed to deliver outperformance by investing in a diverse portfolio of undervalued, high quality companies with positive momentum.

Read Now
Save

Quality Low Volatility

Built in an attempt to strengthen a portfolio’s equity allocation by seeking to deliver more consistent equity returns, targeting 20% to 30% less volatility than the broad market.

Read Now
Save

Quality U.S. Value

Potential to deliver outperformance at lower volatility than the benchmark through the selection of value companies with a quality tilt toward higher cash flows, profitability and return on capital.

Read Now
Save

Quality ESG

Designed to outperform by investing in high quality companies that are well positioned to manage their ESG risks and opportunities relative to their industry peers.

Read Now
Save

Related Content

Slide 1 of 3
  • How Falling Interest Rates, Better Fundamentals May Support U.S. High Yield
    MarketScape
    Save
    The U.S. economy may slow this year and interest rates may fall, making high yield bonds a potentially attractive investment. Learn why.
    View Now
    Save
  • Why High Yield Bonds Could Benefit Portfolios in 2024
    Point of View
    Save
    The potential for a slowing economy this year could spark equity volatility. High yields bonds may help investors manage that risk.
    Read Now
    Save
  • 2024 Investment Outlook: Falling Inflation and Rates, Rising Political Risk
    MarketScape
    Save
    Rate cuts and lower inflation likely will accompany slower economic growth and a rise in global political risks in 2024 — meriting some caution on equities.
    View Now
    Save
  • 1 / 3

    Contact Us

    Interested in learning more about our investment strategies?