The asset management unit of UK- and South Africa-based Investec has launched the Investec GSF Global Endurance Fund, a global equity strategy with the aim of delivering "superior" performance and lower absolute volatility.

From a universe of global stocks with above median yields, but excluding the top quartile in terms of volatility, managers Christine Baalham and Nigel Hankin use the proprietary Investec 4Factor framework to analyse and select stocks for inclusion within the portfolio.

The fund will be managed by Christine Baalham and Nigel Hankin, members of Investec’s 4Factor Equity team.

“The attraction of investing in equities is the prospect of long-term investment returns, however the downside is the volatility associated with achieving these returns. The question therefore becomes whether it is possible to deliver excess market returns, but with lower absolute volatility?" Baalham said.

"We believe the answer to this is yes, by focusing on an investment universe that takes into account both a company’s dividend yield and volatility. Our experience, supported by both academic literature and our own back-tests, is that higher yielding stocks outperform over time as markets reward dependable businesses that return cash to shareholders and demonstrate good capital management," she said.