Fund in Focus - Newton American
Sheridan Admans, investment adviser at The Share Centre, explains why he is positive on America and recommends investors consider the Newton American fund: "North America remains the largest economy on the planet due to its ability to innovate, access to investment, and strong distribution channels both internally and beyond its borders.
"For many investors it is also the economy that dragged everyone into the global economic downturn. But its ‘just in time' management of its economy has played a significant part in returning some stability back to global markets.
"In terms of American funds available there is a wide variety of choice for investors. Our preferred fund, the Newton American fund is not large by any means when compared to its peers but it does have a proven track record that offers consistent returns for investors.
"The fund was launched in 1986 and currently has £62m in assets. For us it appeals because we like Newton's thematic approach to investing which means the house looks to identify the key themes that will be beneficiaries of change. Key investment themes at present are medical technology, information technology networks and companies that distribute low value, high volume products.
"Fund manager Simon Laing took over in March 2003 and has performed well with steady, consistent returns. Simon invests in stocks predominately from the US and Canada and holdings vary between large caps and smaller to mid cap companies.
"This fund is suitable for those investors wishing to diversify their American investments between a large cap mainstream fund and a fund that is relatively unknown.
"The Newton American fund has an annual charge of 1.5% and an initial charge of 4%. The minimum initial investment is £1000.00 and the minimum additional investment is £250.
"As the fund features in The Share Centre's Platinum 120 range, customers of the retail stockbroker wishing to invest in the Newton American fund will not have to pay the initial charge or purchase dealing commission. Customers can also invest in the fund from as little as £10."