Investments  

Sanlam launches dual-reporting US/UK dividend fund

Sanlam launches dual-reporting US/UK dividend fund

Sanlam is launching a dual-reporting dividend fund for US citizens resident in the UK.

The Aubrey Walk Qualified Dividend Fund will target a 4 per cent per annum dividend income net of fees, and will launch on February 1 next year.

The fund has been created by Peter Doherty, head of fixed income at Sanlam, and will be managed by Aubrey Walk Asset Management, a Guernsey subsidiary of Sanlam.

It will invest in large, household-name equities in global developed markets, and will produce two tax reports, one for the UK and one for the US.

Doherty said: “After what has been almost two years in the making, I am excited to be bringing this innovative fund to market. 

“As someone married to a US citizen and with children who have dual UK/US citizenship, I am all too aware of the challenge in looking for suitable funds."

He added the fund can be a core building block of any mixed asset portfolio for a US citizen seeking income who is an ‘Accredited Investor’ resident in the UK. 

“The vast majority of US citizens with advisers are in a 60/40 model. So this is a 50/50 equity and preferred stock [fund], so [this fund] fits into that space," he said.

“The difficulty for advisers is finding bonds or preferred stock that they can buy in to create a diversified portfolio.

“[This is] a unique building block for a 60/40 portfolio.”

The firm expects to launch a second strategy under the same structure in 2022, which will be a pure fixed income fund in keeping with the firm’s Hybrid Capital Ucits fund, as well as its artificial intelligence fund.

sally.hickey@ft.com