Ranger Global Income and Growth Strategy


Origin of the Strategy

A huge demographic group is facing retirement during a period of historically low yields.  Today’s retirees have a longer life expectancy than any group before them.  They are also less likely to be covered by a traditional “defined benefit” retirement plan.  For this large group, funding retirement will be accomplished through a combination of portfolio income, social security, working until a later age and possible pension income.  With these current issues in mind, the Portfolio Manager created the Global Income and Growth strategy in 2003.  Fundamental to the strategy is the Portfolio Manager’s conviction that equity income portfolios should be global in scope to increase the opportunity set.  The goal is to purchase securities that Ranger believes provide returns balanced between meaningful dividend yield and capital appreciation.

Objective: Provide meaningful income & capital appreciation 

The Ranger Global Income and Growth strategy seeks to outperform the MSCI ACWI index while generating a substantially higher yield with a lower level of risk. The strategy invests in multiple types of income generating securities including US stocks, in­ternational stocks, REIT’s, MLPs and BDC’s. The man­agers employ a research-focused investment approach to allocate opportunistically among securities expected to provide current income and long term capital appreciation. In an era of historically low interest rates, many individual and institutional investors may find a mean­ingful, growing stream of income an attractive investment attribute.

Philosophy: Opportunity drives allocation

The seasoned investment team takes a funda­mental, bottom-up approach to investing. Indus­try and country allocations are a residual of stock selection, subject to broad limits for risk control. The managers take a global approach, searching for companies in the US and abroad that offer the yields and dividend sustainability required by the strategy.

Process: A focus on yield, but selectivity is critical

The Ranger investment team continually monitors companies paying above market yields. The Strategy also requires that companies have the financial strength to adequately cover the current dividend, along with operating characteristics and investment quality such that the company is expected to grow its dividend over time. Typically 800-1200 companies meet Rang­er’s criterion for minimum yield. The Income & Growth strategy invests in 40-50 compa­nies, each adhering to Ranger’s strict funda­mental criteria.

 

Venn Diagram

Results:
Since inception, the Strategy has produced an above market yield and meaningful dividend growth. The Strategy has provided attractive down market protection with a beta substantially lower than the MSCI ACWI All World Index. The bottom-up approach results in an active share currently above 90%. The investment team expects income to account for about one-half of long term total returns.  Investment results since inception are available in the Performance section.

 

 

Investment Options

Managed Accounts

Min Investment: $10 million
Income & Growth: 1.00%
International: 1.00%

Private Comingled Fund
Min Investment: $1 million
Income & Growth: 1.00%
International: 1.00%

Ranger Quest for Income & Growth Mutual Fund

 

Institutional Class

Ticker Symbol: RFIDX
CUSIP: 75281Y 800

The Ranger Quest for Income and Growth Fund (the “Fund”) seeks income by investing globally in an array of high yielding securities, primarily equities,  which provide meaningful current income combined with the potential for capital appreciation. The Ranger team employs a bottom-up, fundamental research  approach to investing in high yielding equities including domestic and foreign common stocks, master limited partnerships, and real  estate investment trusts, that it believes will provide returns balanced between income and capital  appreciation.

More information with respect to Ranger mutual funds, including how to invest, may be obtained by accessing http://www.rangerfunds.com/