3 US Investment Trusts for Your Portfolio

The American market is one in which active fund managers struggle to beat the S&P in any meaningful, consistent way. Our analysts highlight three for consideration

Jackie Beard, FCSI 5 December, 2013 | 11:00AM

The number of investment trusts investing in North America is small, comprising just eight funds, four of which are dedicated to small-caps and another is focused on Canada only. Collectively they comprise nearly $3bn of assets.

The US market is one in which active fund managers struggle to beat the S&P in any meaningful, consistent way. In 2013 to the end of November, the average fund in the Morningstar US Large-Cap Blend Equity category is trailing the S&P 500 by nearly 75 basis points and only a third of funds in that category are ahead of that index. Extend that to the last five years and the index is ahead of the average fund by nearly 200 basis points annualised.

I spend much of my time extolling the virtues of the investment trust structure and the outperformance we see so often relative to open-end peers, but in this sector it’s something of a different story.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
JPMorgan American Ord486.00 GBX-1.12
Jupiter US Smaller Companies948.00 GBX-0.42
North American Income Trust Ord245.00 GBX-0.81

About Author

Jackie Beard, FCSI

Jackie Beard, FCSI  is Director of Manager Research Services, Morningstar EMEA

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