Bestinvest says
Outperformance in the North American region has been tricky for active managers yet M&G's Aled Smith has proven he can add value. He uses a variety of ways of finding "alpha" and has shown willingness to evolve his investment process as the economic environment changes. Investors should note that there is a significant overlap (30-40%) between this product and the M&G Global Leaders Fund also managed by Smith. This also means he is able to pick North American stocks that are best in their sector on a global basis.
The fund's objective is long term capital growth through investment in North American securities. It may also invest in Canada, and in companies which are listed, registered or trading within North America.
The manager uses a screening process (mostly using the HOLT system) to identify those companies with a higher return than cost on capital. Further fundamental analysis is carried out to determine whether the stock represents good value. Importance is placed on a company's positive attitude towards and value creation for its shareholders. The focus is on stock selection decisions and no top-down views are imposed on sector choices.
A separate risk management team ensure proper portfolio diversification and that the manager is taking the intended bets.