The LV= US Equity Income Fund’s portfolio will hold between 40 and 70 stocks, with no individual stock exceeding 5%, and will be benchmarked against the S&P 500 TR index.
The fund will invest at least 80% in US equities, but manager Marcus Chandler will be able to invest in corporate bonds or other instruments in order to meet income targets.
“The outlook for US companies is positive, helped by increased sales overseas, the strongest balance sheets in living memory and good cash generation. Going forward we also expect strong dividend growth as cover is very high and the fund will aim to have a yield of 150% of the S&P 500 yield,” said Chandler, who will report to Graham Ashby, head of UK equities at LVAM.
Chandler previously worked with Ashby on Credit Suisse’s equity fund range before LVAM hired the pair, along with Michael Crawford and Mira Bhogaita, in 2009.
LVAM says the US equity income fund will initially be targeted at “discretionary, institutional and fund of funds investors”.
