Brewin Dolphin backs Old Mutual US Dividend fund

Brewin Dolphin has backed the Old Mutual US Dividend fund as sentiment begins to pick up again in the US.

Ben Gutteridge, head of fund research at the discretionary manager, tipped the Old Mutual fund as an ideal choice for investors looking to access the US economic recovery.

The fund has underperformed its benchmark, the Russell 1000 Value index, in the past one, three, five and 10 years.

Article continues after advert

However, the management of the product was outsourced in April 2013 to Barrow, Hanley, Mewhinney & Strauss, an American asset management company based in Dallas, Texas.

Mr Gutteridge said the team “takes a value approach to investing”, which means the fund “is biased towards more industrial and financial names versus a benchmark product”.

At the start of 2014 the US market has struggled, as markets reacted to some disappointing data suggesting its growth may not be as robust as first thought.

However, Mr Gutteridge said “market sentiment has begun to improve as the market increasingly accepts the impact of the severe winter weather”.

He said positive sentiment would return to the US as the cold weather leaves and backed the Old Mutual fund to benefit from this recovery in sentiment due to its value bias.