Growth & Income Model

This smallcase focuses on financially disciplined companies that combine strong capital efficiency, consistent growth, and rising shareholder payouts.

• Companies that manage their investments well tend to achieve consistent earnings growth. This smallcase identifies such companies by selecting those with above-average Return on Equity (ROE) and earnings growth within their respective sectors.
• While earnings can sometimes be manipulated through accounting practices, cash flow is harder to distort. Therefore, this smallcase uses a cash flow-based valuation approach to identify companies trading at attractive valuations, rather than relying solely on earnings-based valuation.
• The smallcase further narrows down to include only companies that are also experiencing positive dividend growth.

Invest in this smallcase to gain exposure to well-managed, efficiently-run businesses available at comfortable valuations.