Epoch Investment Partners has launched a Ucits sub-fund for its popular US Equity Shareholder Yield strategy, in response to continued demand from its European client base.
The long-only equity strategy, which is known for its income generation and defensive characteristics, seeks to achieve the bulk of its total return from dividends, share buybacks and debt reduction.
"This is an attractive way to invest in US stocks that are returning cash to shareholders since buybacks in that market are nearly as important as dividends," said Peter Curry, director of Client Relations for the UK and Europe at Epoch.
The US Shareholder Yield strategy pursues attractive total returns with an above-average level of income by investing in a diversified portfolio of US companies with strong and growing free cash flow. The portfolio seeks to hold between 75 and 120 stocks, with risk controls to diversify the sources of shareholder yield and minimise volatility.
"The launch of a Ucits underscores our commitment to investors in the UK and Europe that want to access high-quality US equities through a conservative, risk-controlled approach that delivers an attractive income with the potential for capital appreciation," commented William Priest, Epoch's CEO and co CIO.
Since the strategy's inception on 30 June 2012, it has provided a first-quartile return and Sharpe ratio.