Aviva Investors has launched its US Equity Income II fund following the soft closure of the £362 million Aviva Investors US Equity Income fund.
The new fund will be run by the managers, Henry Sanders and Thomas Forsha, who are based in the US at River Road Asset Management, an affiliate of Aviva Investors Americas.
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The fund invests primarily in North American equities with a market capitalisation of over $1 billion, and targets a dividend yield that is 1.5% higher than the Russell 3000 Value Index.
The fund aims to generate long-term capital appreciation and will have a greater large-cap bias and less constrained while aiming to offer lower volatility.
The fund has £365 million in assets and since its inception on 8 July 2011 and has returned 27.4% versus an IMA North America sector return of 24.7%. The annual management charge on the new fund’s RDR share class is 0.75%.
The £362 million fund, which is also co-managed by Sanders and Forsha, will soft close in October 2013 to protect the interest of current investors and ensure the fund to be managed in accordance with its investment strategy.
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By GlobalDataSanders said: "While we have seen new all-time market rallies, concerns remain about the outlook for the US economy, and this is likely to cause spells of market volatility."
"Against this backdrop, US dividend stocks are compelling, particularly in consumer staples and the consumer discretionary sectors, as they offer investors the upside of equities but in a more defensive manner," he added.
Jeremy Leadsom, sales director for UK Financial Institutions at Aviva Investors, said: "The fund leverages our significant US-based expertise and their considerable track record of success in US equity investing, and ultimately helps meet ongoing demand UK investors have for income-focused building block products."
