Introduction to North America
North American funds focus on companies that are domiciled in the United States and Canada. These could be companies that generate the majority of their revenues domestically or those that have extensive revenues from outside North America. The US market is the largest and broadest in the world and therefore fund managers have a large selection of stocks and sectors from which to choose.
The benchmark indices are the S&P 500, the Dow Jones industrial average and the technology-focused Nasdaq. Among the major constituents of the S&P 500 are the technology giants of Apple and Microsoft, oil majors Exxon Mobil and Chevron, plus consumer goods groups Johnson & Johnson and Proctor & Gamble, but many fund managers prefer to focus on smaller or mid cap stocks.
The North American market is usually seen as more 'defensive' than other markets - it tends to hold its value even when times are tough. However, because it is large and liquid and there are a lot of market participants, it is also seen as extremely efficient. There don't tend to be as many mispricing opportunities for active managers to exploit. North America managers follow a variety of styles, some prioritising high growth companies, others preferring more 'value' names trading at cheaper prices.
The tax treatment of investments is subject to tax law and HMRC practice which are subject to change. The value of investments may be affected by exchange rate movements where the underlying investments are not denominated in Pounds Sterling.
OEICs and Unit Trusts
OEICs and Unit Trusts
|Name||1 Year (%)||3 Years (%)||5 Years (%)||Discount||NAV|
|Blackrock North American Income Trust Plc ORD 1P||0.77||40.72||60.73||-6.21||163.66||Buy|
|Gabelli Value Plus Trust PLC||-10.45||13.90||-||-9.12||130.39||Buy|
|JP Morgan American IT plc||3.20||40.89||92.18||-4.96||401.40||Buy|
|JP Morgan US Smaller Companies IT PLC Ord 2.5P||4.70||52.47||122.60||-3.39||286.20||Buy|
|Jupiter US Smaller Companies PLC Ord 25P||0.89||25.09||33.65||-12.37||975.65||Buy|
|North Atlantic Smaller Companies IT||-4.38||36.10||89.51||-23.89||3,442.57||Buy|
|The North American Income Trust plc Ord 25p||3.89||51.43||70.61||-7.48||1,302.44||Buy|
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