ABN AMRO Expands US Equity Funds for European Investors

Discover ABN AMRO Investment Solutions' new US equity funds: Parnassus US ESG Growth and River Road US Dividend All Cap Value Equities.

ABN AMRO Investment Solutions (AAIS) has expanded its offerings to European investors with the introduction of two new US equity funds: the Parnassus US ESG Growth Equities and the River Road US Dividend All Cap Value Equities. These two sub-funds are part of the AMS SICAV, an open-ended investment company governed by Luxembourg law, and are managed by AAIS's US-based delegates, Parnassus Investments and River Road Asset Management.

River Road Asset Management is an institutional investment firm that manages assets for pension plans, foundations, and investment companies globally, specializing in value-oriented equity investment management. Meanwhile, Parnassus Investments has been a pioneer in responsible investing for 40 years, focusing on creating enduring value for both investors and the broader community. Today, Parnassus stands as one of the foremost providers of responsible equity and fixed income strategies.

ABN AMRO Investment Solutions will exclusively structure and distribute these funds to European investors via its platform. The Parnassus US ESG Growth Equities Fund, launched in late 2022, employs a strategy that invests in approximately 40 meticulously researched holdings, primarily in large-cap US equity securities. The fund is benchmarked against the MSCI USA Growth TR Net Index and aims to outperform it over the long term through active management that emphasizes innovation and relevance.

The fund managers are on the lookout for companies that are well-positioned to capitalize on long-term secular trends that could shape the market for years to come, while also demonstrating sustainable competitive advantages and robust ESG credentials. A thorough assessment of management quality is paramount, with a focus on businesses that provide their skilled and creative employees with optimal working conditions, both organizationally and environmentally, to ensure long-term success.

The Parnassus US ESG Growth Equities Fund is led by Andrew Choi as the Lead Portfolio Manager, who also manages the ABN AMRO Parnassus US ESG Equities Fund, a sub-fund of the AAF SICAV. He is joined by Shivani Vohra as Portfolio Managers, together boasting a combined 20 years of industry experience. They will collaborate across sectors, leveraging their expertise as sector analysts to rigorously evaluate companies against the firm’s quality standards, supported by a research team of over 20 analysts experienced in selecting US large-cap growth stocks. The fund will also benefit from the advisory insights of CIO Todd Ahlsten.

The second fund, River Road US Dividend All Cap Value Equities, is grounded in a time-tested strategy that has been in place since 2003. This fund is benchmarked against the MSCI USA TR Net Index but operates independently. It adopts a true all-cap strategy, investing in large, mid, and small-cap stocks. The Portfolio Management team seeks well-managed, financially sound companies that generate predictable and sustainable cash flows and dividends, while trading at attractive discounts, rather than distressed businesses trading at deep discounts or overvalued firms that are merely cheap compared to their pricier counterparts.

The fund aims to maintain a minimum of 40 holdings with market capitalizations exceeding $700 million and a positive indicated dividend yield. It is structured around a three-tier framework comprising three distinct components: core (large and mega-cap holdings with high liquidity and attractive yields), high alpha (small and mid-sized companies with appealing yields), and high yield (the highest yielding component of the portfolio, typically exceeding 5%).