2/19/24 7:00 AM - Lesezeit

More Dividend Stocks and Japan.

Robert Karas

Chief Investment Officer, Partner

Equities with high dividend yields and Japanese stocks offer an attractive risk/reward ratio. We are increasing the proportion and slightly reducing the overall equity allocation.

Since September 12, 2022, the equity allocation at Gutmann Portfolio Management has been set to overweight. This means that the current equity ratio of individual client portfolios is higher than the target ratios for the cycle. For example, if an equity allocation of 40%, 60% or 80% with +/-10% bandwidth was agreed with clients, the target allocation in the portfolios is 45%, 65% and 85%. Due to price gains, the equity allocation is sometimes 47%, 67% and 87%. We have now decided to reduce the equity allocation to the target weightings of 45%, 65% and 85%.

In addition, we have changed the structure within equities as follows: 

  • Gutmann Core Equities: 63% (down 7% points) 
  • Gutmann Global Dividends: 20% (up 5% points) 
  • Equities Japan: 12% (up 2% points) 
  • Pure Innovation Strategy: 5% (unchanged)

In the coronavirus year 2021, the gap between dividend stocks and the market as a whole widened. Dividend payers made a comeback on the stock markets in 2022. However, high-dividend stocks once again lagged behind in terms of price performance last year. Our assumption is that the two equity strategies Core Equities and Global Dividends will deliver an attractive return over the cycle. However, they will perform differently over shorter periods. This discrepancy can be exploited by adjusting the weightings counter-cyclically. 

At the beginning of 2021, the proportion of Japanese equities in portfolio management was increased from 5% to 7%. A further increase to 10% was made in February 2022. Japan currently accounts for 12% of the Gutmann equity portfolio. The decisive factor for the increase was noticeable structural reforms in Japan. Rising profit margins, higher dividends and share buybacks increase the attractiveness for investors. 60% of the Japan portion is invested in highly undervalued equities. 40% is accounted for by securities in internationally active companies with strong competitive advantages. 

Please contact your relationship manager with any questions or to discuss your individual investments.

Disclaimer: This is a marketing communication: Investment in financial instruments is subject to market risks. The tax treatment depends on the personal circumstances of the respective client and may be subject to future changes. Bank Gutmann AG expressly points out that this document is intended exclusively for personal use and for information purposes only. It may not be published, reproduced or passed on without the consent of Bank Gutmann AG. The content of this document is not based on the individual needs of individual investors (desired return, tax situation, risk tolerance, etc.), but is of a general nature and is based on the latest knowledge of the persons responsible for its preparation at the time of going to press. This document is neither an offer nor an invitation to make an offer to buy or sell securities. The information required for disclosure pursuant to Section 25 of the Austrian Media Act can be found at the following web address: https://www.gutmann.at/en/about-gutmannDue to the composition of the portfolio and the used portfolio management techniques the Gutmann Pure Innovation, Gutmann Core Equities and Gutmann Global Dividends under certain circumstances can show an increased volatility, i.e. the value of units may be exposed to high up- and downturns within short periods of time.
Further Information on the main risks of the Fund can be found in the Key Information Document ("PRIIPs-KID") as well as the prospectus or the information for investors pursuant to Article 21 Act on Alternative Investment Fund Managers (AIFMG - Alternatives Investmentfonds Manager-Gesetz) under the item "Risk profile of the Fund".
The funds pursue an active management strategy without reference to a benchmark.
For interested parties the Key Information Document (“PRIIPs KID“) in accordance with the Regulation (EU) No 1286/2014 for Gutmann Pure Innovation, Gutmann Core Equities and Gutmann Global Dividends respectively the prospectus in accordance with section 131 InvFG for Gutmann Pure Innovation, Gutmann Core Equities and Gutmann Global Dividends in their current versions are provided in German language free of charge at Gutmann KAG and Bank Gutmann AG, both Schwarzenbergplatz 16, 1010 Vienna, Austria and on the Website www.gutmannfonds.at as well as for Gutmann Core Equities and Gutmann Global Dividends at the German information center Dkfm. Christian Ebner, Attorney at Law, Theresienhöhe 6a, 80339 Munich . The distribution of fund units was notified to the German Federal Financial Supervisory Authority (BaFin). Gutmann KAG may de-notify the distribution of funds in Germany as far the conditions according to Art 93a of Regulation 2009/65/EG are fulfilled
Further information on the sustainability-relevant aspects of the Fund can be found at www.gutmannfonds.at/gfs.

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