America vs Europe: investment holes in one

Graham Spooner, investment research analyst at The Share Centre, marks the start of this year’s Ryder Cup by picking out investment trusts for fans of America and Europe.

America vs Europe: investment holes in one

The Ryder Cup, starting this weekend, will pit a European team with a consistent record of success in recent years, against an American team seeking to recapture past glories.

For those investors who are rooting for the US, we would suggest taking a look at JP Morgan American Trust, which seeks to outperform the S&P Index by investing in quoted companies including Apple and Microsoft. Over the ten year period its performance has been exceptional, ranking in the top 2% of US large cap blended funds, although rather like the American golf team it has underperformed of late. This is partly due to the trust’s investment in value stocks, which have lagged behind some of the strongest performers such as Amazon, deemed by managers Garret T. Fish and Eytan Shapiro to be expensive.

However the US corporate sector remains attractive compared with many other places to invest and dividend growth across the market is expected. We would recommend this trust to investors who continue to believe in the recovery potential of the US economy, and who are willing to accept a medium level of risk. However they should be wary of potential headwinds caused by interest rate hikes, currency movements and the presidential election.

Fans of Europe should look to Jupiter European Opportunities Trust, managed by Alexander Darwall. He seeks companies with good prospects for capital growth, taking into account economic trends and business development, with current holdings including Novo Nordisk, Wirecard, Provident Financial, Relx and Syngenta.

In recent years performance has soared like a birdie, which has led to the fund trading at a premium. This may be off-putting for some investors, but we would point to the strong track record of the fund itself and its manager, who backs his judgement by having a significant amount of his own wealth invested in it. If you want to embrace Europe and invest in companies with a global reach, look no further.


Please remember, no news or research item is a recommendation or advice to buy. Every Investor is not responsible for accuracy and may not share the author’s views. If you are unsure of the suitability of any investment for your circumstances please contact an adviser. All investments can fall as well as rise in value so you could get back less than you invest.

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