Concentrated Equity Income Fundamental Equity
Strategy Goal
Our Concentrated Equity Income strategy is designed to provide investors with current dividend income 150 to 300 basis points above the yield of the S&P 500. We invest in 25 to 35 dividend-paying companies that have, in our opinion, a strong record of dividend payments and a high likelihood of continuing those dividend payments. We seek companies with protective barriers around the business to protect the future ability to pay these dividends.
Our Process
How We Make Equity Strategies Work For You:
Discover
We seek to identify companies capable of generating returns for you. We also consider secular trends that lend themselves to long-term investment horizons.
Assess
We evaluate risk and reward based on our expectations of company fundamental performance.
Invest
We value assets relative to market and growth prospects.
Monitor
We monitor our investments closely. If we believe the investment prospects are less than we expected, we remove the stock from the portfolio.
Objective
The objective of Cavanal Hill’s Concentrated Equity Income Strategy is to generate a dividend yield 150 to 300 bps in excess of the S&P 500, while actively investing in companies capable of growing their dividend over time.
Account Minimums and Fees
| First $5,000,000 | 70 bps |
| Next $5,000,000 | 65 bps |
| Next $15,000,000 | 60 bps |
| Next $25,000,000 | 55 bps |
| Next $50,000,000 | 50 bps |
| More Than $100,000,000 | 45 bps |
Cavanal Hill reserves the right to waive account minimums at its discretion.
Strategy Construction
The objective of Cavanal Hill’s Concentrated Equity Income Strategy is to generate a dividend yield 150 to 300 bps in excess of the S&P 500, while actively investing in companies capable of growing their dividend over time.