Aviva Investors launches second US equity income fund

Aviva Investors has announced the launch of its second US equity income fund, as it looks to meet sustained investor demand for equity income returns from one of the world’s largest economies.

The Aviva Investors US Equity Income Fund II is managed by Henry W. Sanders III and Thomas S. Forsha from an affiliate of Aviva Investors Americas, River Road Asset Management.

The fund invests primarily in North American equities with a market capitalisation of over $1bn, and targets a dividend yield that is 1.5% higher than the Russell 3000 Value Index. In addition to the yield target, the fund aims to generate long-term capital appreciation and is unconstrained in its approach.

The launch of the Aviva Investors US Equity Income Fund II follows the announcement of the intention to soft close the Aviva Investors US Equity Income Fund, which is managed by the same team, next month. The fund has £365m in assets and since its inception on 8 July 2011 it 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%.

Henry Sanders, manager of the Aviva Investors US Equity Income Fund II said:  “The US is proving to be the driving force in leading the global economic recovery, and we expect investor demand for high quality US equity exposure to continue. While we have seen new all-time market rallies, concerns remain about the outlook for the US economy, and which is likely to cause spells of market volatility.”

Jeremy Leadsom, sales director for UK Financial Institutions at Aviva Investors, commented: “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.”

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