In 2012, the team at Soc Gen introduced their so called ‘SG Quality Income Index’ - an index that aims to track stocks with strong fundamentals and good yields. Many in the market now appreciate that both higher ‘quality’ stocks and higher yielding stocks tend to outperform, but according to the research note, stocks that share both qualities put together standout total returns that have averaged 11.6% per year since 1990, more than doubling the return of the global equity markets at a significantly reduced volatility. But what is more striking is the return of the portfolio from when the market topped in 2000 to 2012 - a sideways market and a genuinely miserable time for all. While the total return of stock markets has actually been negative in that time period, the Quality Income index almost tripled. Read the full article. To learn more about this strategy please click here »
Popular Delusions: Introducing SG's Quality Income Index
by Societe Generale Global Equity
In this paper the Societe Generale Global Equity team illustrate that 'Quality Income' stocks have a tendency to enormously outperform both Quality stocks and High Yielding stocks.
This screen is based on a UK dataset.
It uses the following criteria:
Results are sorted by:
And limited to the first 200 Results
| Timeframe | Screen Returns | FTSE 100 | Outperformance |
|---|---|---|---|
| 1 week | 1.42% | -0.50% | 1.9% |
| 1 month | 3.57% | 3.87% | -0.3% |
| 3 months | 9.54% | 5.03% | 4.5% |
| 6 months | 24.11% | 14.35% | 9.8% |
| 1 year | 50.74% | 26.35% | 24.4% |
| Since inception | 53.84% | 24.0% | 29.8% |
| Annualised | 34.76% |
| Maximum Drawdown | -13.30% |
| Average No. of Holdings | 12.1 |
| Diversification Level | Moderate |
Chart based on an equal weighted portfolio of max 25 stocks rebalanced quarterly. Qualifying shares below updated daily. Past performance not indicative of future returns.
| Ticker | Name | Yield % Rolling 1y | Mkt Cap £m | Piotroski F-Score | Altman Z Score (1) | Sector | |
|---|---|---|---|---|---|---|---|
| Subscriber | Subscriber | Consumer Defensives | |||||
| Subscriber | Subscriber | Technology | |||||
| Subscriber | Subscriber | Consumer Defensives | |||||
| Subscriber | Subscriber | Consumer Cyclicals | |||||
| Subscriber | Subscriber | Consumer Cyclicals | |||||
| Subscriber | Subscriber | Industrials | |||||
| Subscriber | Subscriber | Utilities | |||||
| Subscriber | Subscriber | Healthcare | |||||
| Subscriber | Subscriber | Basic Materials | |||||
| Subscriber | Subscriber | Telecoms | |||||
| Subscriber | Subscriber | Utilities | |||||
| Subscriber | Subscriber | Industrials | |||||
| COMPARE | |||||||
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