Investments  

Are US equities still the main game in town?

  • Learn about the performance of US funds
  • Gain an understanding of which sectors are proving propular with managers
  • Be able to describe the challenges facing the region
CPD
Approx.30min

Risky option

Another option may prove appealing for investors who are concerned about US equities looking expensive. Threadneedle American Extended Alpha sits toward the bottom of our table, but has an extra weapon in its arsenal: the ability to short sell equities. This can prove riskier than long-only investing, but the fund may stand to benefit if the worst happens to markets. 

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At the end of October the offering had nearly 18 per cent of assets dedicated to short selling, with nearly half of this in the IT sector.

As such, there are still many ways to access a market that has increasingly polarised investors. But at this stage, making the wrong decision may prove costlier than ever.

CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. In its November survey of global fund managers, Bank of America Merrill Lynch found which equity region to be the most popular among respondents?

  2. Of the 113 IA North America sector members with a five-year track record – including passives – how many active funds managed to beat the benchmark?

  3. Which fund is described as having the ability to short-sell equities?

  4. What is the Morgan Stanley fund’s biggest sector weighting?

  5. Which of the Faang companies is ommitted by the Baillie Gifford American fund?

  6. Which fund is described as “mostly invests in small and mid-cap stocks”?

Nearly There…

You have successfully answered all the questions correctly, well done!

You should now know…

  • Learn about the performance of US funds
  • Gain an understanding of which sectors are proving propular with managers
  • Be able to describe the challenges facing the region

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