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Stocks and Shares ISAObjective
The Share Class is a share class of a Fund, which aims to achieve a return on your investment, through a combination of capital growth and income on the Fund’s assets, which reflects the return of the MSCI USA High Dividend Yield Index, the Fund’s benchmark index. The Share Class, via the Fund, invests in equity securities (e.g. shares) that, so far as possible and practicable, make up the benchmark index. The benchmark index measures the performance of equity securities of large and mid-capitalisation companies in the United States (US) that have higher than averagedividend income and quality characteristics. Quality characteristics, in this context, mean the growth, sustainability and consistency of dividend payments. The benchmarkindex is derived from the MSCI USA Index (the parent index) by selecting companies which have (i) higher than average dividend yields relative to the parent index, (ii)a track record for consistently paying dividends, and (iii) the capacity to sustain dividend payments. Dividend yield is a measure of how much a company pays out individends each year relative to its share price. The benchmark index excludes any Real Estate Investment Trusts (REITs, i.e. closed-ended investment vehicles thatinvest in, manage and own real estate) that are part of the parent index. In order to create the benchmark index, the index provider (MSCI) applies a dividend income and quality screening process to the companies which make up theparent index with REITs excluded. This screening process excludes companies (i) whose dividend payments are extremely high (i.e. in the top 5% of constituents, onthe basis that dividend payments which are particularly high relative to a company’s earnings could be unsustainable) or negative, (ii) which do not have a good trackrecord of growing dividends, (iii) which could be forced to cut or reduce dividends due to potentially weak fundamentals (i.e. information about a company which canbe expected to impact the price or value of its shares, including profitability, consistency of earnings over time and debt levels), and (iv) which rank lowest among theremaining constituents based on recent annual performance. From the list of companies which remain after this screening process, only those with a higher dividendyield relative to the parent index will be included in the benchmark index. Issuer weights in the benchmark index are capped at 5%. The benchmark index is free-float market capitalisation weighted. Free-float market capitalisation is the shareprice of a company multiplied by the company’s shares available to international investors (rather than all of the company’s issued shares). The Fund may also engage in short-term secured lending of its investments to certain eligible third parties to generate additional income to off-set the costs of theFund. The investment manager may use financial derivative instruments (FDIs) (i.e. investments the prices of which are based on one or more underlying assets) tohelp achieve the Fund’s investment objective. FDIs may be used for direct investment purposes.
- Leverage -
- Currency hedgingNo