The fund has two aims:
to provide a combination of capital growth and income to deliver a return that is higher than that of the US stockmarket over any five-year period;
to increase the income stream every year in US dollar terms.
Investment policy and strategy
Core investment: At least 80% of the fund is invested in the shares of companies across any sector and of any size that are domiciled, or conducting the major part of their economic activity, in the US and Canada. The fund usually holds shares in fewer than 50 companies.
Other investment: The fund also holds cash or assets that can be turned quickly into cash.
Strategy in brief: The investment manager focuses on companies with the potential to grow their dividends over the long term and invests in company shares from across a range of sectors and company sizes.
The investment manager selects stocks with different sources of dividend growth to build a fund that has the potential to cope in a variety of market conditions.
Performance comparator: The fund is actively managed. The S&P 500 Index is a point of reference against which the performance of the fund may be measured.
Dividends: A share in the profits of a company paid out to shareholders at set times of the year.
Risks associated with the fund
The value of investments and the income from them will rise and fall. This will cause
the fund price, as well as any income paid by the fund, to fall as well as rise. There
is no guarantee the fund will achieve its objective, and you may not get back the
amount you originally invested.
Changes in currency exchange rates will affect the value of your investment.
This fund holds a relatively small number of investments and, as a result, may
experience larger price rises and falls than a fund which holds a larger number of
If the share class is hedged (H share class), it aims to mirror the performance of another share class. We cannot guarantee that the hedging objective will be achieved. The hedging strategy will limit holders of the hedged share class from benefiting if the hedged share class currency falls against the currencies of the fund’s investments.
Where market conditions make it hard to sell the fund’s investments at a fair price
to meet customers’ sale requests, we may temporarily suspend dealing in the fund’s
Some transactions the fund makes, such as placing cash on deposit, require the
use of other financial institutions (for example, banks). If one of these institutions
defaults on their obligations or becomes insolvent, the fund may incur a loss.
The fund invests mainly in company shares and is therefore likely to experience larger price fluctuations than funds that invest in bonds and/or cash.