5 Top Rated US Funds

The US stock market is notoriously difficult to beat - active managers must work extra hard to add a meaningful margin. These funds have earned a top rating from analysts

Emma Wall 6 December, 2013 | 7:30AM
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1. Schroder US Mid Cap

Rating: Gold

There’s no denying this fund has in recent years lagged its peers during a strongly rising market, but we believe it remains an attractive offering in the US small- and mid-cap space, says Morningstar analyst Oliver Kettlewell.

This team's stability is noteworthy and in our view this structure has enabled them to make better use of each other’s expertise and thoroughly execute the investment process behind this offering.

2. Dodge & Cox Worldwide US Stock

Rating: Gold

Persistence has paid off for investors in Dodge & Cox Worldwide US Stock, says Kettlewell.

This fund only launched in late 2010, but it is a mirror of a US-domiciled offering with a record stretching back more than three decades. A number of stocks in the portfolio could be deemed unloved or controversial and this fact comes through in at-times lumpy performance. Key among the detractors were financials, but management didn't flinch, adding to some names on weakness and initiating new positions, many of which had rebounded well through March 2013.

3. Threadneedle America

Rating: Bronze

We’re disappointed by the number of changes taking place in the analyst team that supports this fund, though we remain convinced of the fund’s merits due to our high opinion of the fund manager, says Kettlewell.

We think Cormac Weldon, who took over from Andrew Holliman in June 2011 following Holliman’s departure from Threadneedle, is an excellent fund manager. Although we are watching the impact of these developments, we remain firmly convinced of the fund’s merits. 

4. JP Morgan US

Rating: Silver

JPM US portfolio boasts an experienced management team using a disciplined and a proven process, says Morningstar analyst Fatima Khizou

This fund benefits from an experienced management team headed by Dennis Ruhl since its launch in 2004. The team receive considerable support from a well-resourced behavioural finance team that is heavily involved in the research process. This cohesive structure has enabled them to make better use of each other’s expertise. 

5. BNY Mellon American

Rating: Bronze

BNY Mellon American is an excellent choice for investors seeking pure US large-cap growth equity exposure, says Morningstar analyst Lena Tsymbaluk

The lead manager is Elizabeth Slover, but rather than being accountable for the fund’s stock selection, she focuses on managing top-down risk and capital allocation. Capital is spread across the 15 career analysts, whilst sector weights are held neutral relative to the Russell 1000 Growth index. The analysts then attempt to add value by picking their stocks and each analyst has freedom to apply their own investment process to their slice of capital.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
BNY Mellon US Opps GBP Inc3.91 GBP-0.04Rating
CT American Retail Acc GBP5.74 GBP-0.04Rating
Dodge & Cox Worldwide US Stock A EUR55.36 EUR0.69Rating
Schroder US Mid Cap Acc2.13 GBP-0.60Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar

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