Investments  

Standard Life launches American Equity Income fund

Standard Life launches American Equity Income fund

Standard Life Investments (SLI) has added an American Equity Income open-ended investment company (Oeic) to its range to be managed by Scott Eun.

Mr Eun also manages the core US equity funds, with the support of Warren Gibbon and the 10-strong US equity team based in SLI’s Boston office.

Minimum investment in the fund is £500, with an ongoing charges figure of 0.94 per cent.

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SLI said the portfolio will consist of 60 dividend-generating US stocks across various industries, and will also be managed with a total return approach. It will aim to produce an overall dividend yield higher than the S&P 500.

It will target both defensive and cyclical stocks, with a combination of high dividend, dividend growth and opportunity stocks.

Jeff Morris, head of US equities at SLI, said: “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 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 Gallacher, director at Leicestershire-based Rowley Turton, said: “I’m a big fan of equity income funds generally, so the addition of an American Equity Income fund is to be welcome, especially as finding good US investment funds seems a challenge for UK-based investors.

“That said, I tend to favour global equity income funds, as these give the fund manager the largest opportunity set of high-yielding companies. That is, the fund manager can fish in a bigger pond, rather than being restricted to just the American market.”