Aviva Investors US Equity Income II SC 2 GBP

  • 183.11p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 225.23p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.75%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.89%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 2.50%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 27 September 2021, fund data last updated 03 October 2013

This fund is managed by a US affiliate company of AMG (River Road Asset Management LLC, based in Kentucky) and aims to deliver a dividend yield 1.5% higher than the Russell 3000 Value Index with the potential for capital growth. The value-orientated strategy invests across the market capitalisation spectrum, though portfolio companies will be at least $1bn in size. This fund is not allowed to invest in cluster munitions manufacturers.

Fund summary

Sector North America
Structure OEIC
Launched
Size £185m
Yield 2.50%
Charging basis Capital
Dividends paid 28 Jan, 28 Apr, 28 Jul, 28 Oct

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.89%

Allocation

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Investment process

The managers River Road were bought by AMG from Aviva in early 2014, though the Kentucky-based investment team is autonomous. Their principal source of stocks is Value Line, a weekly paper publication that provides one page summaries of individual companies. The managers scan this manually for ideas in a similar way to a quant screen. However, they believe it is superior as the human factor means they can vary their criteria and avoid missing opportunities, though all stocks must yield more than 2% and have a market cap above $1bn. Arms manufacturers are excluded from this mandate. The screening process leads to a working universe of 200-300 companies, which they whittle down to a pretty stable portfolio of around 60 names. A company's market price must be 90% or less of River Road's appraised value to qualify for investment, with a target of 85% or less. The portfolio has 3 parts: Core (2-4% yield, stable large caps); High Alpha (3-6% yield, small & mid caps for faster growth); High Yield (>5% yield small & mid caps with lower growth potential).

Manager research

Average monthly relative returns

  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%
  • 20/21 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Track record

Periods of worst performance

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Relative 0.00% ()

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Sector breakdown

Financials 19.00%
Health Care 14.00%
Information Technology 13.00%
Utilities 11.00%
Consumer Staples 9.00%
Consumer Discretionary 9.00%
Communications 9.00%
Energy 7.00%
Industrials 6.00%
Others 3.00%

Portfolio

50-75 stocks. 61% large caps (over US$15bn market cap); 34% mid caps (US$2-15bn); 5% small caps (US$1-2bn)

Key Investor Information - Income

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Key Investor Information - Accumulation

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