Power Portfolio: 4 star global strategy

William Priest
Scott Eells | Bloomberg | Getty Images
William Priest

A muted trading session on Wall Street Wednesday due to the Veterans Day holiday. Global stocks also remained lackluster, as investors braced for a potential interest rate increase in December.

William Priest runs the MainStay Epoch Global Equity Yield fund for Epoch Investment Partners, which has $43 billion in managed assets.

Wednesday on CNBC's "Power Lunch" Priest said equity investors must "learn to live" with the volatility in the coming year.

"I believe 2016 will be defined by acceptance of lower growth. Two percent is the new four percent, as far as the developed world is concerned," said Priest.

Priest's strategy in turbulent times is to focus on shareholder yield when choosing which stocks go into his portfolio.

"We look for companies that generate free cash flow which is reinvested in the business, used for acquisitions or returned to shareholders through dividends, buybacks and debt repayments," said Priest.

Three examples of Priest's shareholder yield holdings include Verizon, Kimberly Clark and National Grid.

"Shareholder yield is especially attractive in today's market environment," said Priest.

The MainStay Epoch Global Equity Fund has returned 6.48 percent over the past year, 10.86 percent over the past three years, and 12,11 percent over the past five years. It holds a four star ranking from Morningstar

Top holdings include National Grid, Philip Morris International and AT&T.

CNBC's Karen Stern contributed to this article