Threadneedle American Z

Investing at least two-thirds of its assets in shares of medium to large companies in North America or companies that have si

  • 362.40p
    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.

  • 379.14p
    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?

  • 0.00%

    Initial charge

    Some 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!

  • 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).

  • 0.82%
    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.

  • 0.40%
    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…

Prices as at 04 March 2021

The Fund seeks to achieve capital growth through investing primarily in the stocks of medium to large companies domiciled in North America or which have significant North American operations. The fund primarily targets large US blue chip companies (market cap above $1bn) with 60% of the portfolio derived from Threadneedle's US team's model list. Additional medium and small growth stocks supplement this core.

Fund summary

Sector North America
Structure OEIC
Launched October, 2012
Size £2,731m
Yield 0.40%
Charging basis Income
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 0.82%

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Investment process

The Threadneedle US equity team consists of 8 investment professions, each with their own sector responsibility. The fund aims to achieve long term capital growth through primarily investing in a portfolio of North American blue chip companies. Although the primary focus is on the largest companies in the US, with at least 60% deriving from the US team's core list, the fund is free to select good quality medium size companies. These supplemental stocks are significant. Company selection emphasises the following : - dominant franchise in growing or niche markets; - capable and proactive management with established track record; - under leveraged balance sheets with strong cash flow; - milestone events and news flow e.g. earnings, new products; - attractive valuation (P/E, cash flow). Since Cormac Weldon returned as head of US equities at Threadneedle in April 2004 the fund has adopted a more focused approach with the number of holdings reduced from 100-115 to about 80. The fund has

The manager Andrew Holliman left in May 2011 to go to polar Capital. Until a replacement is found the acting manager is Threadneedle's head of US equities Cormac Weldon. We cannot rate this fund until we know who the new manager will be and have assessed his/her own track record. From our recent meeting at Threadneedle it is clear that Cormac Weldon will NOT be the named manager on this fund when they have found a new recruit. So we will need to use the track record of the incoming manager before we can rate this fund. 40-50 stocks are similar between this fund and the more focused, high conviction Threadneedle American Select Fund, managed by Cormac Weldon.

Manager research

Average monthly relative returns

  • 16/17 -0.22%
  • 17/18 0.06%
  • 18/19 -0.21%
  • 19/20 -0.09%
  • 20/21 0.08%

Bestinvest MRI

  • 3 years -0.07%
  • 5 years -0.08%
  • Career -0.12%
  • 3 years 49.20%
  • 5 years 48.40%
  • Career 35.20%

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 7 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.12%. 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.

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Top 10 holdings

Data accurate as at 31 May 2020

7.2% Microsoft Corp
6.3% Apple Inc
5.6% Amazon.com Inc
4.9% Alphabet Inc. Class A
3.8% Facebook Inc
2.8% Home Depot Inc
2.7% Mastercard Inc
2.5% Adobe Inc
2.4% Bank Of America Corp
2.2% Abbott Laboratories
Source: Trustnet

Sector breakdown

Information Technology 30.00%
Health Care 16.00%
Communications 13.00%
Industrials 11.00%
Consumer Discretionary 10.00%
Financials 10.00%
Consumer Staples 4.00%
Materials 2.00%
Energy 2.00%
Utilities 2.00%

Portfolio

The portfolio will hold around 70-80 stocks and will typically be split 80% large cap companies / 20% smaller cap companies. Active positions relative to the S&P 500: stock +/- 2%, sector +/- 5%.

Key Investor Information - Income

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Key Investor Information - Accumulation

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