Aviva Investors intends to launch an American equity income fund later this year, subject to regulatory approval.
Henry Sanders, a founding member of River Road Asset Management, will manage the new product and aim to create a dividend yield of 1.5 per cent over the Russell 3000 Value Index.
Sanders will mirror the Dividend All-Cap Value Strategy used by River Road, which was acquired by Aviva early last year, as closely as possible. This is likely to see the fund hold half of its portfolio in large caps, with one-third in mid caps and the remainder in small caps.
John Clougherty, the chief executive of Aviva Investors, says: “Since the beginning of this year, 117 companies in the S&P 500 Index have initiated or increased their dividends to a record-breaking £10.1 billion.
“Those dividends should provide significant support for portfolios in the face of greater market volatility – and reinvested, underpin attractive long-term returns.”