Investment Style

The Richmond advantage involves cutting through the noise and applying a disciplined, bottom-up investment approach.  Richmond takes a long-term view of investing with a focus on generating a growing level of income, preserving capital, and achieving capital appreciation over time.

Investment Objectives

Generate an above market yield and growing distributions by focusing on North American dividend paying companies

Income

Dividends that steadily rise over time are not necessarily the cause of superior total returns for a stock.  Rather, they are a symptom of a well-run business with a lasting competitive advantage – and therein lies the cause.

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- Scott Yester

Key Investment Criteria 

Income Generation

The Fund Portfolio focuses on companies that pay a dividend or distribution.
 

Yield level considered but secondary to long term dividend growth

Balance Sheet Strength

Capital resources to finance growth, dividends, and share repurchases
 

Low to moderate debt levels

Long Term Growth Orientation

Focus on free cash flow generation
 

Able to reinvest cash flows at consistently high rates of return and defend returns against competition

Qualitative Assessment

Company specific opportunities and challenges
 

Secular and cyclical trends facing the industry
 

Management stewardship based on results

Valuation

Focus on growth potential, cash flow generation, and dividend growth

As a smaller firm, Richmond portfolio managers will have the flexibility to manage both the Richmond Equity Fund and the Richmond US Equity Fund opportunistically and to take meaningful positions in micro-, small-, mid- and large-capitalization equities.