North American funds ’6th best-selling sector’ – Cofunds

Advisers have been putting clients into North American funds, making North America the sixth best-selling sector over the past 12 months, Cofunds’ commercial director Adam Smith has said.

Commenting on a snapshot of US sales trends published by the platform, he said: “There were steady inflows into North America throughout the year, with advisers keen to get exposure to the US recovery.

“The sector provides investors with both geographic and sector diversification. Stock selection has proved beneficial for the funds that make up the top 10 list.”

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Overall, money flowed into 169 North America funds, accounting for 6 per cent of total net sales on Cofunds platform.

According to Cofunds, HSBC’s £1.3bn American Index vehicle was the highest-selling fund in the sector, followed by the Vanguard US Equity Index.

The JP Morgan £2.7bn US Equity Income fund recorded the third highest net sales over one year, returning 17.4 per cent, according to the Essex-based platform.

Old Mutual North American Equity and GAM North American Growth also proved popular among advisers.

Adviser View

Nicholas Round, director of Shropshire-based Treowe Wealth Advisers, said: “It is impossible in our view to pick a fund and a sector, and is about asset classes and diversification.

“I cannot say that North America is the place to be. Diversification, which would include the US, is more important. There is also the need to decide if you are worldwide-centric or home-centric; and the other thing is to keep cost down, and Vanguard has a great reputation for this.”