A Fund to Capture Growing Dividends

Focus: FUNDS

After running a high-dividend strategy for 15 years in separately managed accounts, Miller/Howard last year launched the Destra High Dividend Strategy Fund (DHDCX) in a sub-advisory role. Portfolio manager Jack Leslie discusses the fund’s objectives.

Kate Stalter: Today’s guest is Jack Leslie, portfolio manager at Miller/Howard and the Destra High Dividend Strategy Fund.

Jack, as I understand, Miller/Howard is the sub-advisor of the fund. Tell us a little bit of the history of this strategy. Were you managing this type of strategy as separate accounts prior to the time the fund was formed?

Jack Leslie: Yes, we were. We’ve been managing the Destra High Dividend Strategy Fund for almost a year, but before that we’ve been managing the high-income dividend strategies for about 15 years. This month is actually our anniversary.

The team at Miller/Howard has been doing this for a long time, and we think of ourselves as dividend managers, not just value managers that happen to have a yield. We really look for three things: High dividend yield, growth of dividends, and financial strength.

Kate Stalter: I wanted to talk a little bit about where the fund falls in the overall style box. I was looking at the Morningstar data, and I noticed that it was in the large-cap value area. Explain why it might fall into that particular style box.

Jack Leslie: Well, we don’t fit neatly into the style boxes.