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Indxis, a leading independent provider of investment products and a subsidiary of Mergent Inc., today announced the launch of the first UK Mergent Dividend Achievers Index for investment firms offering index-tracking funds. The Index includes UK companies that have increased their annual regular cash dividends for the past five or more consecutive years, providing a regular and reliable income stream for low-risk portfolio strategies.
The UK Mergent Dividend Achievers Index tracks companies with a proven track record of consistent earnings growth and strong cash reserves. Products based on Indxis’ proprietary methodology will allow investors to track stocks with high-yield, increasing dividend-per-share, resulting in a low-risk portfolio in comparison to the market.
The launch of the UK Mergent Dividend Achievers Index follows the success of the company’s US counterpart, which has attracted over US$7 billion in assets-under-management to linked funds offered by major investment firms including BlackRock, Invesco PowerShares and Vanguard.
Jonathan Worrall, CEO, Mergent Inc. said:
“Investor demand for high-quality, dividend-paying companies is evident in the growth of the US-based fund. I am hugely proud of the Indxis team who have expanded our offering in the UK by enabling the licensing of the market’s first investment products based on our proprietary UK Mergent Dividend Achievers methodology.”
The US Mergent Dividend Achievers Index has outperformed the market in the past 10-, 15-, and 20-year periods. The UK Mergent Dividend Achievers Index has outperformed the MSCI Index over the past 10-, 15- and 20-year periods with less volatility, according to back-tested statistics run by Indxis.
Alan Price, sales director for Indxis, said:
“We can provide investment firms with an efficient route-to-market for products based on the UK Mergent Dividend Achievers Index. The recent growth in the US funds reflects the trend towards investor demand for this type of Index. It is ideal for the risk adverse investor looking for a way back into equities or for building investable products for long-term saving plans such as retirement and school fees because they provide a steady increasing income at relatively low risk, no matter how volatile the market.”
