Wells Fargo Asset Management (WFAM) has expanded the Wells Fargo (Lux) Worldwide Funds portfolio with the launch a new sub-fund, the Global Equity Enhanced Income Fund (GEEI).The UCITS fund vehicle will combine dividends from equities and premiums from selling options, which aims to deliver a sustainable distribution yield, typically in excess of 6 per cent per year. The fund will invest in 60-80 high dividend stocks and will be registered across Europe, Hong Kong, Singapore, and Korea. The portfolio will be risk-managed across multiple dimensions, including region, sector, factor, and macroeconomic sensitivity.
GEEI will target sustainable income and robust capital appreciation through its innovative and differentiated strategy. Supported by a strong track record of delivering alpha, its active stock selection will maintain a balanced exposure across sectors, regions, and factors, while avoiding style biases and structural underweights often seen in high dividend strategies. Its dynamic option income enhancement, based on a quantitative model, will increase option income and preserve upside potential by balancing income sources in a market-aware manner.
Sustainable income for the fund will be managed by Kandarp Acharya and Petros Bocray. Vince Fioramonti and Justin Carr will manage GEEI’s active stock selection and Megan Miller and Harin de Silva will manage the enhanced systematic overlay.
This announcement follows the addition of two additional sub-funds, the Global Small Cap Equity Fund and the Small Cap Innovation Fund, to the Wells Fargo (Lux) Worldwide Portfolio earlier this year.
“We are proud to bring this innovative approach to our clients, which combines the existing capabilities of the Wells Fargo Systematic Investing teams, including Multi-Asset Solutions, Golden Capital, and Analytic Investors,” says Sylvain Agar, head of International Financial Institutions for WFAM. “Our combined strategy is structured to avoid the common pitfalls of high yielding dividend portfolios, leveraging our expertise using multiple yield levers and enhanced systematic options to deliver sustainable income return per annum.”