Why Strategic Indexes?
Miller/Howard Strategic Indexes is a subsidiary of Miller/Howard Investments Inc., a boutique asset management firm focused on income-producing equities and the entire energy vertical for almost 25 years. Our investment focus, since inception, has been on high-quality companies that not only pay a high dividend yield, but also have the potential to grow their dividends at above-market averages. We seek both income and opportunities for growth of principal in a single investment.
Our indexes seek to capture and distill all we have learned over nearly a quarter century of active management of dividend and energy infrastructure companies. Our strategic, rules-based indexes are created to enhance current passive approaches to asset allocation.
The indexes are designed to go beyond market exposure by applying persistent, strategic factors we have observed and confirmed through our active management. They find and retain the "good," as opposed to cap-weighted indexes, which in our view hold the good, the bad, and the ugly—by their very nature and definition.
In addition to their "everything but the kitchen sink" approach, traditional market-capitalization-weighted indexes tend to overweight overvalued stocks that have appreciated in price. Miller/Howard Strategic Indexes seeks to improve on this model by equal weighting, and by limiting constituent selection to those companies that share distinct, positive, fundamental factors such as dividend growth, yield, valuation, and profitability—all through a disciplined rules-based process with regular rebalancing.