fund
Threadneedle American Select Z
An aggressive US Equity Fund with a growth bias.
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349.86p
Price (Inc)
These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.
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359.55p
Price (Acc)
These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?
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0.00%
Initial chargeSome funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!
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0.75%
Annual management charge
This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).
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0.75%
Ongoing charges
This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.
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0.00%
Yield
How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…
The Fund aims to achieve above average capital growth through investing in companies domiciled in North America or which have significant North American operations. These include smaller and growing companies, those with potential for merger or takeover and those with new management recovery situations.
Fund summary
| Sector | North America |
| Structure | OEIC |
| Launched | October, 2012 |
| Size | £1,108m |
| Yield | 0.00% |
| Charging basis | |
| Dividends paid | 7 May. |
Charges
| Standard initial charge | 0.00% |
| Initial charge via Bestinvest | 0.00% |
| Additional bid/offer spread | 0.00% |
| Annual management charge | 0.75% |
| Ongoing charges figure | 0.75% |
Allocation
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Investment process
Target companies may include smaller and emerging growth companies, those with potential for merger or takeover, those with new management recovery situations and exploration companies. The "Select" investment approach adopts a more aggressive relative structure this means it has the ability to take bigger stock and sector positions which may lead to increased levels of relative volatility, in addition the fund may carry a larger weighting to sub $10bn companies relative to the Threadneedle American fund. Since Cormac Weldon returned to the fund the number of positions has been cut from 80-85 to about 60 and the maximum size of active bets has increased.
This is a more aggressive version of the core Threadneedle American Fund. It is a higher conviction, focused fund. The fund is usually characterised by a higher beta, stock turnover and tracking error relative to the S&P. Threadneedle operate the largest US equity team based in the City of London. Investment philosophy focuses on the key forces of change in economies and markets and the companies that will benefit. After a period of absence Cormac Weldon returned to manage the fund in April 2004.
Manager research
Average monthly relative returns
- 16/17 -0.28%
- 17/18 0.01%
- 18/19 -0.20%
- 19/20 0.07%
- 20/21 -0.08%
Bestinvest MRI
- 3 years -0.07%
- 5 years -0.10%
- Career -0.13%
- 3 years 49.60%
- 5 years 42.90%
- Career 32.30%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.
Nadia Grant / Diane Sobin
Grant joined Threadneedle in February 2014, having previously worked at JP Morgan Asset Management where she was a portfolio manager focusing on US equities within the global multi-asset group. Sobin joined Threadneedle in 2011 from sister company Columbia Management. She is responsible for the analysis of companies in the energy sector and contributes to the team's macroeconomic and thematic research. She joined Columbia in 2001, having previously held portfolio manager roles at ZurichScudder, JP Morgan, Oppenheimer and Dean Witter Reynolds. She has a Bachelor of Business Administration - Finance degree from Pace University, New York and is a Chartered Financial Analyst and a member of the New York Society of Security Analysts.
Track record
Nadia Grant / Diane Sobin has 6.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.13%. During the worst period of relative performance (from March 2014 - March 2019) there was a decline of 12% relative to the index. The worst absolute loss has been 14%.
Periods of worst performance
| Absolute | -14.00% (January 2020 - March 2020) |
| Relative | -12.00% (March 2014 - March 2019) |
About the MRI
Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.
Allocation
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Top 10 holdings
Data accurate as at 31 May 2020
| 8.5% | Alphabet Inc. Class A |
| 8.4% | Microsoft Corp |
| 7.4% | Amazon.com Inc |
| 6.3% | Berkshire Hathaway Inc |
| 4.9% | Facebook Inc |
| 4.1% | Lam Research Corp |
| 4% | Visa Inc |
| 3.9% | Comcast Corp(New) |
| 3.4% | Adobe Inc |
| 3.2% | Booking Hldgs Inc |
| Source: Trustnet |
Sector breakdown
| Information Technology | 34.00% |
| Communications | 19.00% |
| Financials | 12.00% |
| Consumer Discretionary | 11.00% |
| Health Care | 11.00% |
| Industrials | 6.00% |
| Money Market | 3.00% |
| Consumer Staples | 3.00% |
| Energy | 1.00% |
Portfolio
Typically, the fund holds 50-60 stocks with around 40% in mid and small cap (defined as less than $5bn market cap).
Constraints
Active positions relative to the S&P 500: stock +/-3%, sector +/-10%. Number of holdings 62. The fund must hold at least 40% in companies from the team's core list.