GAM North American Growth Accumulation Units

Although the US economy has continued to grow, the pace of growth has been slow. High unemployment, a weak housing market, higher energy and commodity prices, and a huge debt pile continue to provide challenges. Gordon Grender, manager of the GAM North American Growth Fund, suggests these factors will contribute to slower US growth for some time to come.

In this environment of wider economic uncertainty, he continues to focus on finding individual companies with good prospects. He is not afraid to maintain elevated cash levels in the fund if he perceives a lack of opportunities. Presently, he is looking for companies that can maintain sales growth, have stable management teams, and arguably most importantly have a transparent business model. He believes investing in a company you do not fully understand can be a dangerous strategy.

By focusing on these key criteria Gordon Grender believes it is possible to find stocks that can perform in the current uncertain environment. The US is a major consumer driven economy and he believes the consumer sector is presenting some interesting opportunities, particularly at the local, low income end of the market. He also has exposure to infrastructure companies which could benefit from investment to repair the US's dilapidated infrastructure. Key underweight positions include a lower exposure to information technology companies and those providing staple, as opposed to discretionary, consumer goods.

While Gordon Grender has the flexibility to invest in companies of all sizes he believes it is often among medium-sized and higher-risk smaller companies that he will find the best opportunities. This is also a concentrated portfolio, typically containing between 30 and 45 stocks, which is a higher risk approach. Any investment in this fund should be considered over the long term. This fund is not currently on the Wealth 150 list of our favourite funds in each sector.