Standard Life Investments (SLI) has expanded its US fund range by launching the American Equity Income fund for UK-based investors.
The fund will invest in about 60 high dividend US stocks, with an aim to generate higher dividends than the S&P 500 index.
American Equity Income fund will target high dividend, dividend growth as well as opportunity stocks, having a defensive and cyclical nature.
The new vehicle will be managed by Scott Eun, who will be supported by Warren Gibbon and a 10-member team, based in Boston. Eun also manages the firm’s North American equities pension strategy.
SLI’s head of US equities Jeff Morris says: "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.
"There’s also a broad spread of sectors in the US that offer income-yielding opportunities, with over 80 per cent of companies in the S&P500 currently paying a dividend."
"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," Morris added.