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.
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
April 2020 - Latest commentary
US markets advanced by a very strong 13% in April 2020, taking its cue from the crash of one of its worst months in history in March due to the virus outbreak. Volatility remained high but receded from record levels.
The value style again underperformed the markets slightly in April, and the differential with growth was 4% (11% vs. 15%). The 10-year treasury yield remained flat at 60bps. Commodities fell by 5% on average. Gold however climbed by around 6%.
Consumer Discretionary, Technology, Healthcare and Communication Services led the markets’ move higher. Yield-friendly Utilities and Real Estate bucked the trend, but still ended positive.
The fund outperformed its style by around 1% in April, and as such finished slightly behind the broader markets.
Exiting April the fund was offering a price-to-earnings ratio level of 9.3 vs.19.5 for the market or a 55% discount. A historic level of more than a 50% discount to the markets on earnings valuation, with a price-to-earnings ratio of 7.7vs.17.5 for the markets. On cash flow and book 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 that of the market.
The dividend yield was at 4.1%, for a market differential of 190bps. Active share remained around 96%.
Previous months’ commentaries are contained within the fund factsheets.