Global Asset Management (GAM) is adding another product to its constellation of star funds.
The GAM star American focus fund brings the total of GAM star funds up to 12 and aims to provide long-term growth. Set up as a UCITS, the fund is domiciled in Dublin. GAM has aimed the fund at the experienced investor who is looking to invest in the US with a medium-risk product.
The fund will invest in a portfolio of 35 to 50 stocks in the S&P 500 index, which covers companies in the US and Canada. Up to 20 per cent of the fund may also be invested in government bonds, investment-grade corporate bonds and junk bonds.
Managed from New York by fund manager James Abate, the companies will be chosen on a bottom-up basis. Stocks will be chosen by looking at the profits of the companies, the sectors they are in, their potential for growth and if they are currently undervalued.
Abate joined GAM in January 2001 and also manages the GAM star America fund. Before this he was portfolio manager of the Credit Suisse transatlantic fund and the Credit Suisse equity fund USA from May 1995.
The American market has had a volatile time over the past year, with the S&P 500 index dropping from 1,507.1 points on September 5, 2000 to 1,133.6 points on August 31, 2001.
According to Standard & Poors, looking at the GAM star range of funds, seven are first quartile and three are third quartile, based on £1,000 invested on a bid-to-bid basis with net income reinvested over one year to August 27, 2001.