Framlington Asset Management has announced the restructuring of its old American smaller companies fund.
The unit trust will now be known as the Framlington Nasdaq fund and is still aimed at the smaller investors who want to get some exposure to the US sector. Formerly benchmarked against the Russell 2000 index, it will now aim to outperform the Nasdaq composite index.
Framlington feels that the Nasdaq composite index has been unfairly labeled as purely a technology market, even though it does contain a number of other companies in the industrial and consumer sectors and therefore has a broader base than the Nasdaq 100 index.
However, the biggest sector in the Nasdaq composite index is still technology which, along with the telecommunications and healthcare sectors, accounts for more than 50 per cent of the index.
Although the Nasdaq composite has been more stable than the Nasdaq 100, it has still seen a great deal of volatility since the beginning of the year. Bearing this in mind, this fund is pitched at the medium to higher risk investor.
According to Standard & Poor's the Framlington Nasdaq index is ranked 8 out of 17 funds, based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to September 4, 2000.