ABN AMRO Investment Solutions debuts two new US equity funds for European investors

ABN AMRO Investment Solutions (AAIS) has broadened its offer to European investors on its platform with the launch of two new US equity funds – Parnassus US ESG Growth Equities and River Road US Dividend All Cap Value Equities.

The two sub-funds of the AMS SICAV, an open-ended investment company under Luxembourg law, are managed by AAIS US-based Delegates, Parnassus Investments and River Road Asset Management.

River Road Asset Management is an institutional investment firm managing for pension plans, foundations and investment companies across the world. The firm specializes in value-oriented equity investment management.

Parnassus Investments is a responsible investing pioneer, working for 40 years to invest for Principles and Performance® to create enduring value for its investors and the world around us. Today, Parnassus is one of the leading providers of responsible equity and fixed income strategies, the statement said.

ABN AMRO Investment Solutions will structure and distribute these funds to European investors exclusively through its platform.

Based on a strategy launched in late 2022, the Parnassus US ESG Growth Equities Fund invests in approximately 40 well-researched holdings, primarily in equity securities of large cap US companies. Benchmarked against the MSCI USA Growth TR Net Index, the fund ultimately aims to outperform it in the long term through active and high conviction management focused on innovation and relevancy.

The fund managers aim to invest in companies which are poised to benefit from long term secular trends that may shape the market for years to come and show sustainable competitive advantages together with strong ESG credentials. The quality of management teams will also be thoroughly assessed with an emphasis placed on businesses providing their highly skilled and creative employees with the best working conditions possible, in terms of organisational and environmental practices to help the company thrive in the long term .

The Parnassus US ESG Growth Equities Fund is managed by Andrew Choi as Lead Portfolio Manager (he also serves as a Portfolio Manager on the ABN AMRO Parnassus US ESG Equities Fund, sub-fund of the AAF SICAV) and Shivani Vohra as Portfolio Managers, who have a combined 20 years of experience in the industry.

Both Portfolio Managers will work collaboratively across sectors while leveraging their experience as sector analysts, rigorously evaluating companies against the firm’s quality standards. They are supported by the full research team of more than 20 analysts with experience selecting US large cap growth stocks. CIO Todd Ahlsten will serve as advisor to the fund.

The second fund, River Road US Dividend All Cap Value Equities, is based on a time-tested strategy launched in 2003 which is benchmarked against the MSCI USA TR Net Index but managed independently. This is a true all cap strategy investing in large, mid, and small cap stocks.

The Portfolio Management team looks for well-managed, financially strong companies that generate predictable and sustainable cash flows and dividends, while trading at attractive discounts, rather than challenged businesses trading at deep discounts or overvalued businesses that are only cheap relative to their higher-priced peers.

The fund will target a minimum of 40 holdings with market caps above $700m and a positive indicated dividend yield. It is best described as a three-tier framework made up of three distinct components: core (large and mega cap holdings with high liquidity and attractive yields), high alpha (small and midsized companies with attractive yields) and high yield (highest yielding component of the portfolio, usually exceeding 5%).

The River Road US Dividend All Cap Equities Fund is managed by Portfolio Managers Thom Forsha, CFA, and Andrew McIntosh, CFA. They possess 26 and 20 years of industry experience, respectively.

Todd Ahlsten, chief investment officer at Parnassus Investments, said: “The Parnassus US ESG Growth Equities Fund emphasizes sustainable innovation and companies that resonate with customers’ needs. This mandate strengthens our partnership with ABN AMRO Investment Solutions and aligns well with our mission to build wealth responsibly for long-term investors. I am excited to put our collective experience to work on this fund and widen the choices for ABN AMRO Investment Solutions’ European clients. I’m confident in the abilities of Andrew, Shivani and the entire team supporting this new fund to generate positive outcomes for investors.”

CEO R. Andrew Beck at River Road Asset Management, added: “Our partnership with ABN AMRO Investment Solutions marks a bold step in bringing our time-tested Absolute Value® approach to a new audience, and we look forward to providing its European clients access to first-rated value-oriented stocks in various sectors, from information technology to financials and healthcare, with high and growing dividends over time.”

Bob Hendriks, chief commercial officer at ABN AMRO Investment Solutions, said: “By entrusting the European structuring and distribution of their new US equity funds to ABN AMRO Investment Solutions, both Parnassus Investments and River Road Asset Management offer European clients a unique opportunity to invest in some of America’s most innovative and best-performing companies.

"I’m particularly excited to add another ESG Original strategy to our growing suite of products, and I’m energized by the opportunity to collaborate with a new high-quality delegate like River Road. This launch is a significant step in the ongoing expansion of our platform, enhancing our ability to deliver diverse and responsible investment options to our clients across Europe”.