RBC Global Asset Management has launched a new European fund with an equity-income mandate. Announced today, RBC European Dividend will invest mainly in shares of major companies with above-average dividend yields, and will make quarterly income distributions.
The portfolio will be managed by the London-based European equity team led by Dominic Wallington, chief investment officer of RBC Global Asset Management (UK) Ltd. This team also manages the $3.7-billion RBC European Equity, which has a 3-star Morningstar Rating and is by far the largest fund in the European Equity category.
Along with common shares, the fund will also invest in preferred issues. Though there is a bias toward large-cap companies, the managers may also hold shares of small- and mid-cap issuers. To help reduce risk, the fund will be diversified by sector within the region.
As part of its stock-selection process, the UK-based team assesses the economic outlook for the European region, and identifies promising sectors and investment themes. The managers select individual stocks on the basis of their assessment of the intrinsic value of each company, liquidity considerations and overall portfolio risk.
The management fee, not including fund expenses, is 1.85% for the no-load Series A and for the optional-load Advisor Series, and 0.85% for Series F for fee-based accounts.
The fourth purchase option, and the cheapest, is Series D for self-directed investors. The management fee for this series is 1.1%.