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Aviva Investors to close US equity income fund and launch successor

Aviva Investors plans to soft-close its US equity income fund and launch a successor fund to meet demand for its dividend all-cap strategy.

Henry Sanders and Thomas Forsha’s £366m Aviva Investors US Equity Income fund will be soft-closed in October this year to ensure that it can continue to meet its investment strategy.

Aviva Investors sales director for UK financial institutions Jeremy Leadsom says: “In the interests of our clients, we have taken the decision to soft-close the Aviva
Investors US Equity Income fund to ensure that we can maintain its size and investment strategy.”

The firm intends to launch the Aviva Investors US Equity Income Fund II in early September. This fund will also be managed by Sanders and Forsha.

Leadsom adds: “We remain committed to offering a geographically diversified equity income portfolio and plan to launch a new US-focused fund in early September.

“The new strategy will have a greater large cap bias than its predecessor and will be less constrained while at the same time offering marginally lower volatility.”

Hargreaves Lansdown investment analyst Richard Troue says this decision is more to do with the individual views of Sanders and Forsha and not representative of sentiment in the sector. 

He says: “It is difficult to say if we will see more action being taken across the sector.

“[The new fund] could be worth looking at. Personally I would wait and see how it performs, rather than rushing in.”


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