Low-beta, low-volatility core US equity exposure, with long-term capital appreciation potential
An attractive diversified source of income in a rising rate environment
Strong competitive performance with attractive risk characteristics
The fund aims to produce an attractive income, alongside the potential for long-term capital growth, by investing in a portfolio of 85—110 US large and mid-cap stocks that meet three key criteria:
Quality - Companies with durable franchises, consistent patterns of earnings, high return on
invested capital, conservative financials and strong management teams
Valuation - Companies that are trading at attractive valuations
Income - Companies that can deliver income by paying a minimum 2% dividend yield
Companies that meet these three criteria should support a healthy dividend at a low payout ratio, ensuring that income payments are strong and sustainable.
A low payout ratio generally means that these well-managed companies can reward investors with a dividend today while leaving capital available to grow shareholder value and enhance the dividend for tomorrow. The best-performing stocks over the past 20 years have been those with above-average yields and below-average payouts.
The fund's manager, Clare Hart, is supported by a team of over 25 dedicated research analysts based in the US, who focus solely on US companies. Clare and her investment team, have a long history of investing in US dividend-paying stocks. The fund's investment team aims to identify attractively valued companies that are in good financial heath and can pay sustainable dividends.
This fund is designed for investors looking to gain exposure to the attractive growth potential of the US stock market, and who appreciate the benefits of reinvesting dividends over the long term. The fund can help investors seeking to produce a regular income from a single-market equity fund. It may also provide a good source of diversification for portfolios that are focused on UK equity income funds.