Investec American fund

Andy Parsons, advice team manager at The Share Centre explains why investors wanting exposure to America, particularly within the large cap arena, should consider the Investec American fund.

"Many feel it was the US economy that dragged everyone into the 'credit crunch', which in turn led us into the global economic downturn.  However, it is fair to say that it is doing everything within its power to pull itself out of the doldrums.

"The strength of ‘brand America' should also help ensure that the economy reignites itself and key indicators as to whether this is working throughout 2011 will be GDP numbers, unemployment figures and state of the US housing market.

"Investors also should not lose sight of the fact that the very best fund managers look to identify those companies that are profitable, have healthy balance sheets, strong management, excellent products and services and that has already shown they can survive and take appropriate actions when needed.  We feel Connor Browne, manager of the Investec American fund, has the ability to do this.

"When selecting different types of companies, the shortlist is divided into three style groups; basic value (financially sound, well established); consistent earners (steady earnings and dividend growth); and emerging franchises (attractively valued companies in the process of establishing a leading position and expected to grow at an above-average rate).

"In order to provide diversification and to ensure that the fund is well positioned for changing market conditions its portfolio is constructed with a balance between these three groups.

"Although it does so infrequently, the fund can invest in fixed income securities to a limited extent where the managers believe it is beneficial to do so."