The fund’s investment objective is to select and hold European shares that offer the highest dividends through a quantitative filter that picks stocks whose dividends are amongst the highest 40% of the benchmark index, the MSCI Europe. A qualitative analysis, which aims to ensure the sustainability of the dividend, supplements this initial selection.

The selection focuses primarily on companies that have paid high dividends over the long term. The final portfolio is fairly concentrated with 50 to 65 securities with a relatively strong and reliable risk/return profile.

The creation of G FUND - European Equity High Dividend stems from thinking about two observations made over the long term:

1) Dividends are the main source of total return on equities

2) Companies that consistently distribute high dividends are more resilient and perform better.

This is especially true in sectors such as Telecommunications, Pharmaceutical, Utilities and Energy, where the dividend yield is even higher than the yield on corporate bonds.

In fact, the portfolio has a significant sector bias with a strong weighting in these sectors which, for the most part, are non-cyclical (particularly Telecoms and Pharmaceutical) and offer greater resilience during bear markets.

The performance of G FUND-European Equity High Dividend currently confirms this greater resilience with an outperformance¹ of + 2.1% compared to its benchmark index since its launch².

G Fund European Equity High Dividend offers a relevant management strategy in a market environment marked by a low level of return on government bonds and by corporate bonds weakened by uncertainties over the sovereign debt crisis. The fund therefore presents an attractive alternative for investors looking for yields. This trend should accelerate, in light of the environment of weak growth and declining bond yields, in favour of companies that consistently offer high dividends.

¹ Past performance is no guarantee of future results and is not constant over time.
Results do not include any fees charged when subscribing for or redeeming shares

² Variance recognised over the period from 5 July to 16 September 2011 - Launched on 20/06/2011, the fund was fully invested on 05/07/2011.