EuroPac
International Dividend Income Fund
EPDIX (I Share)
EPDPX (A Share)
Purpose
The EuroPac International Dividend Income Fund offers investors a potentially low volatility fund, focused primarily on sustainable and growing dividend income.
We are distinct from other dividend funds in that rather than focus on the highest yield, we focus on a firm’s ability to reliably pay their dividends, and grow them over time. Too often, companies appear to have a high yield because the market is pricing in a dividend cut. When investors chase these companies, and a cut eventually takes place, the investors sell the stock further, often resulting in a capital loss for the investors and a reduced dividend – which is the real true risk in dividend investing. By performing thorough due diligence and focusing on a company’s ability to pay a dividend and grow it over time, we believe we are adding only the highest quality dividend payers to our portfolio, resulting in a less volatile product overall with more consistent income and reduced risk for capital impairment.
In addition to focusing on sustainable dividends that grow, we also strive to add stocks only when they are trading at a discount to fair value. Our holding period is long-term, meaning we may be a more tax-efficient option for investors.
If you are looking to diversify your foreign currency exposure into a portfolio of high quality firms, with potentially low volatility and an ability to pay their dividends and grow them over time, the EuroPac Dividend Fund is a good investment vehicle to look more closely at.
Process
Our process begins with a thorough and complete review of all investible companies within our universe. This review is both qualitative and quantitative, with the goal of identifying exceptional companies with strong balance sheets, that are positioned in industries with positive long-term prospects. The highest quality businesses are then valued and placed on a watch list. We will then patiently wait until a business on the watch list hits our target buy price, which incorporates a large margin of safety. By focusing on the long term and having a low portfolio turnover, we believe we are able to increase the chances of successful security selection.
Funds
Rating
Holdings
| British American Tobacco PLC | 4.1% |
| Samsung Electronics Co Ltd | 3.6% |
| Vodafone Group PLC | 3.5% |
| Newmont Corp | 3.1% |
| SK Telecom Co Ltd | 2.9% |
| Barrick Mining Corp | 2.4% |
| Nokia Oyj | 2.3% |
| ASML Holding NV | 2.2% |
| Novo Nordisk A/S | 2.1% |
| IAMGOLD Corp | 2.1% |
Regions
| Canada | 16.5% |
| Britain | 12.8% |
| France | 8.7% |
| Spain | 7.2% |
| Brazil | 6.9% |
| South Korea | 6.4% |
| Norway | 5.1% |
| Australia | 4.7% |
| Singapore | 4.2% |
| Finland | 4.0% |
Sectors
| Basic Materials | 18.2% |
| Consumer Staples | 17.9% |
| Communications | 16.7% |
| Utilities | 13.2% |
| Financial | 11.2% |
| Energy | 11.1% |
| Technology | 7.4% |
| Others | 4.2% |
