Titan Global Equity Income Fund
The Titan Global Equity Income Fund seeks to deliver a combination of long-term capital growth and a growing income stream. The fund invests in high-quality businesses that generate strong cash flows, supporting sustainable dividend payments without relying on increased borrowing or asset sales. We focus on companies with durable competitive advantages, robust balance sheets and proven track records of returning capital to shareholders, creating a portfolio designed to provide both income today and growth over the long term.
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A rising dividend is one of the clearest signals of a well-run, cash-generative business. Our job is to find those companies and pay a sensible price for them.
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- Andrew Deegan, Associate Director
The Titan approach
We take a bottom-up, global approach to identifying high-quality businesses that aims to sustain and compound high returns on capital. We also look for companies that look to fund a growing dividend from their cash generation without weakening their balance sheets.
Our quality and growth investment style focuses on companies with a clear competitive advantage in their market. We look for evidence of this through high and persistent returns on capital, supported by superior earnings growth over time.
Investment process
Our investment process begins with business quality. Fundamental research helps the team assess a company’s competitive position, financial strength, returns on capital and ability to generate cash consistently.
Valuation discipline then informs the price we are prepared to pay. Each holding is reviewed regularly against the criteria that supported its inclusion in the portfolio. Clearly defined sell disciplines help the team decide when the original investment case has weakened or the valuation no longer provides sufficient potential.
This patient and repeatable process is designed to support consistent decision-making throughout the investment cycle.
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Investment philosophy
Dividends must be a by-product of durable cash generation, not the objective of the business.
- Quality first
We start with the quality of the business, rather than its headline yield. Companies must demonstrate high returns on invested capital, low levels of borrowing and consistent cash generation.
This approach is intended to avoid companies where an apparently attractive yield may not be sustainable. Instead, we look for businesses with the financial strength to support both future investment and shareholder distributions.
- Sustainable income
Every holding must demonstrate that its dividend is supported by the underlying business. We assess cash-flow cover, the discipline applied to dividend payments and the company’s record of maintaining and increasing distributions. The objective is a progressive income stream that can grow over time, rather than the highest possible starting yield.
- Complimentary design
The Fund is designed to complement the IFSL Titan Global Equity Fund. A 50/50 allocation to the two funds can provide more balanced sector exposure and a higher portfolio yield than the IFSL Titan Global Equity Fund alone.
The two strategies have distinct roles. The IFSL Titan Global Equity Fund focuses on growth-oriented compounders, while the Titan Global Equity Income Fund focuses on cash-generative companies that return capital to shareholders.
Why Titan Global Equity Income?
Quality-led income
A targeted portfolio yield of around 3%, with dividends supported by cash flow and the potential to grow over time. The investment process prioritises business quality rather than selecting companies on yield alone.
Discipline throughout
A clearly defined process guides what the team buys, the price it is prepared to pay and when it sells. This supports consistent decision-making across different market conditions.
Complementary by design
The Fund is designed to sit alongside the IFSL Titan Global Equity Fund. A 50/50 blend of the two aims to deliver balanced sector exposure with a meaningful yield premium.
Get in Touch
Contact us to find out more.
Important Risks to consider
The value of an investment can fall as well as rise and you may not get back the amount originally invested. The Fund will be exposed to financial markets and market conditions can change rapidly. Prices can move irrationally and be affected unpredictably by diverse factors, including political and economic events. A company that we deal with may renege on its obligations, costing the Fund money. The Fund may engage in transactions in financial derivative instruments for hedging purposes. There is a risk that losses could be made on derivative positions or that the counterparties could fail to complete on transactions. The Fund may be exposed to emerging markets, which are typically riskier than more established markets, as they can involve a higher-than-average risk due to the volatility of currency exchange rates, limited geographic focus, investment in a smaller number of issues, political and economic instability and less liquid markets. Difficulty in trading may arise, resulting in a negative impact on your investment. The Fund may have exposure to overseas markets, either directly or indirectly, and is therefore exposed to currency risk. Further information regarding the risks of investing can be found in the Prospectus and KIID.
