We
have been looking carefully at the North American market
and have concluded that it is the right time to recommend
a switch out of the Schroders US Smaller Companies Fund.
There
has been a marked drop in the performance of the US smaller
companies sector in 2005 as the US appetite for risk has
declined. US sentiment has switched into more defensive
stocks such as utilities and healthcare which are normally
found in the larger capitalized companies.
The
Schroder US Smaller Companies Fund served us well during
2003/2004 but in the last six months has only gained 1.1%.
This compares with performance over the same period in
larger capitalized funds of between 5% and 8%.
We
are therefore recommending that you switch your holdings
from Schroders into either The Baillie Gifford American
Fund or the Standard Life American Equity Growth Fund.
We will advise clients individually on our specific choice
of fund in line with their own portfolio holdings in Schroder.
You
can view Factsheets on both the Baillie Gifford American
Fund and the Standard Life American Equity Growth Fund
by logging onto www.morningstar.co.uk
Please
let us know as soon as possible whether you accept our
recommendation using;-
PS.
Argyle will not charge you for making this switch.
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