Global fund manager, Standard Life Investments (SLI), is celebrating the third anniversary of its European Equity Income Fund. Launched on 3 April 2009, the Fund has returned 39.72% over three years, 6.25% over two years and -3.55% over the last twelve months, placing the Fund in the 2nd quartile over three years, top quartile over two years and top decile over one year.
Harnessing the proven stock picking skills of the 10 strong European equity team, the Fund, managed by Will James, aims to provide investors with a yield of at least 115% of the FTSE Europe ex UK Index (£), together with the potential for some capital appreciation over the longer term. It invests into a portfolio of European companies across three distinct categories namely; those delivering high dividends, those demonstrating superior dividend growth, and finally companies where the dividend is likely to surprise on the upside.
Will James, Manager of Standard Life Investments European Equity Income Fund says: “The diversity of equity income available from outside the UK provides a wealth of opportunity for an income fund driven by bottom up stock picking. The market all too often forgets that dividends and dividend growth are key drivers of equity returns over time. My differentiated approach, which puts income at the centre of every stock decision I make, has benefitted greatly from a focus on the dividend sustainability of cash disciplined and well managed companies.
“Europe remains an underappreciated region where there are exciting opportunities from a dividend perspective in terms of the overall level of yield and dividend growth. During the last three years companies from Ryanair to Swedish Match have contributed positively to the Fund’s performance.”
Ben Morris, Global Equities product specialist, UK Wholesale, Standard Life Investments. says:
“The Fund has demonstrated over the last three years its ability to effectively navigate all types of equity market conditions. We are confident that our robust and repeatable investment process, carried out by our well resourced and structured equity team, will continue to provide a rich source of investment opportunities for investors in the Fund.”