ABN AMRO has introduced the North American growth fund.
The fund is a unit trust that will invest in between 30 and 40 medium to large cap companies in the US and Canada, with the fund aiming for growth with a level of medium risk.
The portfolio of companies will cover a wide range of sectors, with a maximum of 5 per cent of the fund in any one company. The initial list of companies in the fund include Disney, Pfizer, Coca-Cola, Gillette, Bank of New York, AOL Time Warner, Caterpillar and Pepsico.
Despite the events of September 11, ABN AMRO believes the US economy will bounce back from its current downturn and will recover during the first half of 2002. The gross domestic product of the US fell by 0.4 per cent from July to September 2001, while consumer confidence has fallen to the lowest level since 1994.
The fund will be managed from Atlanta, Georgia by ABN AMRO subsidiary Montag & Caldwell. In charge will be senior portfolio manager David Watson, who joined Montag & Caldwell in 1999. Before joining he was senior portfolio manager at SunTrust Banks.
According to Standard & Poors of ABN AMROs six unit trusts, one is first quartile, one is second quartile, one is third quartile and two are fourth quartile, based on £1,000 invested on a bid-to-bid basis with gross income reinvested over one year to November 1, 2001.