Standard Life Investments has launched an American Equity Income OEIC to UK based retail investors.
The company says the fund expands the suite of ‘geographical income solutions’ the fund manager offers which includes UK, European, Global Emerging Markets & Global offerings.
It launches at a time when dividend paying stocks offer lower volatility and dividend yield and growth remain key drivers of equity returns in the US.
Scott Eun will manage the OEIC with the support of Warren Gibbon and the broader US equity team of 10, who are also based in Standard Life Investments’ Boston office.
The fund will have a total return approach and will comprise about 60 dividend generating US stocks across various industries with the aim of producing superior returns with an overall dividend yield higher than the S&P500. It will have exposure to a diversity of stocks, both defensive and cyclical. It will target a balance of high dividend, dividend growth and opportunity stocks.
Jeff Morris, head of US Equities, Standard Life Investments, said: “This is an exciting offering for investors looking for exposure to the US equity market. The vehicle’s income mandate helps reduce some of the volatility and potential downside inherent in the market while its total return approach offers the ability to perform in positive markets.
“Scott is an experienced manager with a solid track record behind him and the fact that we can now offer an income solution alongside the existing American Equity Unconstrained Fund is an exciting development for our team.
“Although the US is not always synonymous with income investing, there are a number of companies that have delivered stable income streams and are growing dividends.”
The US equity team work in tandem with the Credit, Strategy and ESG teams all of whom adhere to the asset managers’ central Focus on Change investment philosophy.
Scott Eun, in addition to being lead manager on our new American Equity Income Fund, also manages core US Equity funds and is senior analyst on Healthcare, E-commerce and Interactive Media.
Warren Gibbon also manages the US Equity portfolio of two Pooled Pension Multi-Asset Funds in addition to analyst responsibilities for Autos, Metals and Mining, and Oil Services.
