«Jonathan Unwin featured in Citywire’s “Buyers’ Market”»

“US equity has long been a tricky sector for European investors due to the market’s efficiency and the limited number of funds available in Ucits format. As such, one way of providing outperformance has been to select funds based on style at the right time of the cycle. With this in mind, we bought the Fidelity America fund, which focuses on large-cap value with a defensive angle.

We were admittedly far too early with our purchase, but it has started to outperform during the cyclical ‘vaccine reflation’ trade. Fortunately we are increasingly seeing more US funds in general crossing the pond for European distribution, and with respect to value we like the Heptagon Yacktman US Equity fund which seems to find a healthy balance between quality and valuation. The continued domination of the momentum-driven Faang stocks suggests that it is not sensible to put all your eggs in the value basket just yet, and we choose to complement our value exposure with a US small-cap holding as a way to capture growth without chasing the overvalued large tech names.”

Jonathan Unwin
Deputy Head, Asset Management and Advisory

( source: Citywire )