About This Strategy - [Return to Top]
Assets Under Management (AUM): $1902.8M (in US$ millions)
Required Minimum: $100,000
Benchmark used: Russell 1000
Strategy type: All Cap
Strategy description: Income-Equity Strategy is a diversified, dividend-growth equity portfolio that seeks high current dividend income plus growth of income and principal. Stocks are primarily US-based, multi-cap companies from across the broad equity market. In the portfolio, 25% can be invested in foreign stocks that trade on US exchanges (ADRs) and up to 25% can be exchange-traded Master Limited Partnerships (MLPs). This strategy has the potential to provide “unfixed income” from stocks with high current yields and growth of cash flow from dividends. Investors seeking solid total returns that comprise both income and growth, high current income that may increase every year, potential for inflation protection, and a lower federal tax rate on qualified dividends will find this strategy attractive. Because this version of Income-Equity includes MLPs, it will generate K-1 tax reports.
Strategy web link: External Link
About The Company - [Return to Top]
Miller/Howard Investments, Inc.
Approach to Sustainable & Responsible Investment: Socially Responsible Investing (SRI) is a commonly used phrase that describes the integration of environmental, social, and corporate governance (ESG) criteria with financial standards when making investment decisions. Miller/Howard Investments Inc. believes, as do many others, that this integrated approach provides a framework for achieving better long-term investment returns while building sustainable global economies and markets. Since the founding of our firm, we have engaged in rigorous analysis of companies using ESG criteria, establishing individual company profiles of corporate citizenship that can be compared to others. Our social research involves a comprehensive process that utilizes exclusion and inclusion screens, case-by-case analysis, established principles of environmental stewardship, fair employee policies, and ethical, transparent governance. A company must pass our social evaluation and/or be considered best-in-class by our team in order to be eligible for investment in our SRI portfolios. We view this extra layer of due diligence as an essential risk-control measure. We also participate in shareholder activism, carefully vote proxies, regularly publish a shareholder advocacy newsletter, and support organizations or managers leading shareholder resolutions whenever pertinent to our portfolio holdings and policies.
Total AUM in SRI: $$4,126.2M (in US$ millions)
Research conducted: Both internally and externally
Researcher name: Luan Jenifer, Executive Vice President; Patricia Karr Seabrook, Shareholder Advocacy Coordinator; Nicole Lee, Lead ESG Analyst
Specific Screening Information by Category - [Return to Top]
- Climate / Clean Technology: Positive Investment - We favor companies that are proactive in pollution prevention and have implemented clean energy initiatives to reduce emissions of greenhouse gases (GHGs) and other pollutants. We also consider internal management systems, environmental records, company reports, and a company’s environmental performance in relation to peers. While no company is perfect, we look for companies that are working toward a sustainable future and reducing their carbon footprint. We favor companies that implement or create solutions to reduce GHG emissions and other pollution. Such positive activities may offset, in certain instances, legacy activities that have had a negative impact on the environment. We also believe that companies should address the issue of global warming by adopting risk-management control measures. Thus, we do not avoid oil- and gas-producing companies and their service providers. Instead, we seek best-in-class companies that pay special attention to environmental considerations and we may, from time to time, include such companies in our portfolios.
- Other Environmental: Positive Investment - We favor companies that implement or create solutions to reduce their environmental impact. In our analysis, we consider a company's internal management systems, environmental records, company reports, and a company's environmental performance in relation to peers.
- Diversity & Equal Employment Opportunity: No Screens - Positive Engagement
- Human Rights: Restricted/Exclusionary Investment - We favor companies that maintain a responsible corporate record internationally and domestically by upholding human rights standards. We avoid investing in companies that have serious and persistent human rights problems.
- Sudan: No Screens - Positive Engagement
- Board Issues: No Screens - Positive Engagement
- Executive Pay: No Screens - Positive Engagement
- Alcohol: Restricted/Exclusionary Investment - Our portfolios exclude companies whose primary business is the production of alcohol. Companies whose sales of such products are ancillary, such as restaurants, hotels, convenience stores, or other similar entities are not automatically excluded.
- Defense/Weapons: Restricted/Exclusionary Investment - Our portfolios exclude companies whose primary business is the production of firearms.
- Gambling: Restricted/Exclusionary Investment - Our portfolios exclude companies whose primary business is the production of gambling equipment. Companies whose sales of such products are ancillary, such as restaurants, hotels, convenience stores, or other similar entities are not automatically excluded
- Tobacco: Restricted/Exclusionary Investment - Our portfolios exclude companies whose primary business is the production of tobacco. Companies whose sales of such products are ancillary, such as restaurants, hotels, convenience stores, or other similar entities are not automatically excluded.
- Other/Qualitative: We are driven by a relational approach, working with companies to protect or improve shareholder value. We strive for ambitious yet mutually beneficial outcomes, and employ a multi-faceted strategy that includes screening, direct engagement with companies, filing shareholder resolutions, proxy voting, coalition building, and public policy involvement.
- Shareholder Engagement - Shareholder Resolutions: Filed or co-filed with companies on environmental, social or governance issues
- Shareholder Engagement - Private Dialogue: Conducted with companies on environmental, social or governance issues
- Proxy Voting: Actively voted by my institution for this investment strategy in support of environmental, social or governance issues in accordance with formal guidelines