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Aviva Investors to launch US equity income fund

by Daniel Grote on May 16, 2011 at 11:48

Aviva Investors to launch US equity income fund

Aviva Investors is to launch a US equity income fund for UK investors.

The fund will be run by Aviva's US subsidiary River Road Asset Management and will try to mirror its Dividend All-Cap Value (DAV) strategy.

Aviva said the aim of the strategy would be to deliver a yield 1.5% higher than the Russell 3000 Value Index giving a total fund yield of around 3.7%. River Road founder Henry W Sanders will run the portfolio.

John Clougherty, chief executive of Aviva Investors, said: 'The acquisition of River Road Asset Management in early 2010 provided us with a strategically important high quality US equity investment capability with an impressive track record.

'We are bringing this expertise to our UK clients at a time where investors are moving back into developed market equities and the ongoing improvement in the health of the US economy, low interest rates and a cheap dollar continue to propel US equities higher.'

There are very few US-focused equity income funds on offer to UK investors and Clougherty highlighted the potential of the asset class.

He pointed out that since the beginning of the year 117 companies in the S&P 500 index have initiated or increased their dividends to a record-breaking US $16.6 billion.

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