The RSMR monthly fund update - the new recruits from our June review

03 Jul 2023

The RSMR monthly fund update - the new recruits from our June review

Every month we study the universe of funds in the investment marketplace to assess whether they meet our exacting standards and should be given the RSMR seal of approval.

Here are the new recruits from our June review:

BNY Mellon US Equity Income

The BNY Mellon US Equity Income fund targets a yield of at least 50% in excess of the S&P 500. The fund typically consists of between 30 and 60 holdings and is value orientated focusing on a high dividend income with solid divided growth.

The strategy on which the UCITs vehicles are based is the Income Stock strategy which was launched in 2011. The Income Stock strategy is run out of Boston and forms part of the Equity Income element within the Equity desk at Newton. There is both a GB domiciled and an Irish domiciled open-ended fund available within the IA North America sector. Although the fund is benchmarked against the S&P 500 due to the yield target, its investment universe is the Russell 1000 index with the strategy aiming to stay within its large cap value style.

The fund sees itself as different to its peers due to its differing composition to the S&P 500, lack of bond proxies in the fund compared to the S&P 500 and peers, and the fund being able to deliver performance in a rising rate environment. This is an interesting US equity income fund that is run by portfolio managers that have worked together for over twenty five years and have been on the strategy since launch.

Click here to read the full factsheet for the BNY Mellon US Equity Income Fund


Brown Advisory US Smaller Companies

The Brown Advisory US Smaller Companies fund joins it’s investment trust counterpart on the rated list. The portfolio manager seeks to utilise the successful 3G investment process that has been used across the smaller and mid cap company strategies. The fund is rooted in a high level of fundamental analysis to enable it to seek out the best opportunities within its investment universe with a view to achieve long-term capital growth by investing in a diversified portfolio of quoted US smaller and medium-sized companies. 

The in-depth analyses undertaken by the analysts and portfolio managers aims to identify businesses that are leaders in their selected industry and have the ability to grow their market share. Businesses which are scalable and earn high returns on invested capital which can then be used to reinvest in the business and reward shareholders, strong founder-led governance or a board that is capable of articulating the strategic direction of the business are considered as candidates for the portfolio. The team have a strong long-term track record which we believe can continue.                                             

Click here to read the factsheet for the Brown Advisory US Smaller Companies Fund



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The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.

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