Managed since December 2014 by the same manager and with the MSCI North America Index as a benchmark, the fund invests in attractive US companies with sustainable dividend yields.

The fund:
  • Is managed by a highly experienced and top performing value manager

  • Adopts a disciplined value style with a distinctive quality overlay

  • Offers lower risk than the broad market with low correlations to other US funds

February 2020 - Latest commentary


US markets declined in February, losing around 8% (despite starting the year strongly) on fears of the coronavirus. This followed one of the best years in history.

The value style of investment underperformed in the decline, a rare occurrence, losing around 1.5% more than the growth style of investment. This was in line with the streak in place since the end of 2016.

10-year treasury yields tumbled massively, falling from 1.6% at end of January down to below 1.2% at the end of February. This followed on from the previous month’s decline. 

Commodities lost much less than equities, falling by around 1.6%, this was despite oil losing around 10% in the month and gold remaining steady.

Defensive sectors as well as Materials and Energy outperformed but were still down. Technology was the worst sector with Microsoft warning of a profit shortfall.

Exiting February, the fund was offering around a 50% discount to the markets on a profit’s basis, with a price-to-earnings ratio of 10 vs 20 for the markets. On a cash flow basis, the discount was even higher at 60%, while on a sales basis the discount was at a record 70%. This was coupled with a leverage ratio of two-thirds to the market, and a 40% higher return on equity. The dividend yield was at 3.7%, for the differential of 155bps vs the market. Active share remained around 96%.

Previous months’ commentaries are contained within the fund factsheets.

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Fund disclaimer

Past performance is not a guide to future performance. Do remember that the value of an investment and the income generated from them can fall as well as rise and is not guaranteed, therefore, you may not get back the amount originally invested and potentially risk total loss of capital. A table with five years performance is available in the fund factsheets below.

The fund invests geographically in a narrow range, there is an increased risk of volatility which may result in frequent rises and falls in the Fund's share price.

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