Your Template For Beating A Bear Market

Your Template For Beating A Bear Market
Carl Hazeley

over 1 year ago1 min

This year’s bear market has been tough for professional investors: of the 1,342 actively managed US stock funds tracked by The Wall Street Journal, only 32 managed to end the last 12-month period in positive territory.

Of those, the one that performed best was the Federated Hermes Strategic Value Dividend Fund (ticker: SVAIX, expense ratio: 0.94%): you can see above that it’s up almost 12% over the last year, and almost 5% in 2022 alone. The fund’s strategy is simple: buy stakes in businesses that pay out large dividends, that have a record of regularly raising those dividends, and that have the ability to continue doing so.

As for how you can replicate this resilient portfolio, the fund’s factsheet is a good place to start: it shows that 19% of the fund is invested in healthcare, 17% in consumer staples, 15% in energy, 14% in utilities, 13% in communication services, and another 13% in financials stocks. The biggest single company holdings in the fund – each representing over 4% of the fund’s total investments – are tobacco company Philip Morris International, telecoms giant Verizon, and French energy titan Total.

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Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

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