View more on these topics

Julian Gibbs

ABN Amro has just launched a North American growth fund. The timing is quite right in my opinion because it is always sensible to launch funds when the market is low. North America has been one of the worst performing sectors over the past year, being down by around 36 per cent. But it is still about the best performer over 10 years, with a rise of 230 per cent.

The new ABN Amro fund is managed by its wholly-owned subsidiary, Montag & Coldwell, based in Atlanta, Georgia. Montag & Coldwell has an outstanding record and a team which has been working together for many years.

The new fund will invest in 30 to 40 blue-chip companies. Montag & Coldwell&#39s portfolios have outperformed the S&P 500 index in nine out of the past 11 years and marginally underperformed in the other two years.

It quite rightly points out that, in last 10 years, UK equities outperformed US equities only twice, in 1993 and 1996, and that UK investors have been missing out.

David Watson, its lead fund manager, is highly experienced and consults with 14 other portfolio managers on every investment decision, whether buying or selling, and then he acts on the majority view. This system has worked very well in practice.

Only once since the Second World War has the US market suffered two negative years in succession, which was during and following the oil crisis in the early 1970s. The recession in the US is likely to be over by mid-2002 and it is worth remembering that stockmarkets usually anticipate market recovery by between three and six months.

ABN Amro has a high reputation to keep up, with brilliant fund managers such as Nigel Thomas and George Luckraft, and I believe that this new fund will be another winner, too.

Recommended

DWP to launch face to face advice service

The Department for Work and Pensions is set to launch a face-to-face advice service for pensioners and those planning for retirement. As part of the new Pensions Agency, advisers would offer a home visiting service. It says it will give advise on benefits and if asked about personal pensions would direct people to websites and […]

BSA chief says make watchdog accountable

The Financial Ombudsman Service has been criticised by Building Societies&#39 Association chairman Martin Ritchley for its lack of accountability on rulings which can cost companies millions of pounds.Speaking at the BSA annual lunch last week, Coventry Building Society chief executive Ritchley said the FOS should be subject to the same safeguards as the FSA as […]

VCTs urged to open up on NAVs and holdings

Venture capital trust pundit Martin Churchill is calling on VCT managers to standardise their performance reporting in a bid to boost clarity across the sector.Churchill, who runs the IFA information service Tax Efficient Review, says current performance reporting is erratic and often as infrequent as bi-annual.He would like to see VCT managers produce regular reporting […]

Regulation bucks stops with Kenmir

David Kenmir is the director with responsibility for over 7,500 authorised investment firms which operate in the UK financial service arena.The buck stops with him when it comes to the regulation of not just IFAs but fund managers, second-tier investment banks and stockbrokers.He is also answerable to managing director Carol Ser-geant for the FSA&#39s themed […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com