More investment trusts have increased their exposure to the US than any other geographical area in the past year, according to research from the Association of Investment Companies (AIC). France has been the biggest casualty, with a number of European investment trusts reducing exposure significantly.
Big on Uncle Sam
The investment trusts that made the biggest increases to their US exposure, comparing end-April 2011 with end-April 2012, were: Martin Currie Global Portfolio, which changed its investment objective and benchmark to emphasise a more global approach; JPMorgan Overseas; Miton Worldwide Growth; Polar Capital Technology; and JPMorgan Elect Managed Growth. Of course, there were some exceptions - Scottish Mortgage, for example, reduced exposure to the US by 5 per cent (from 33 per cent a year ago to 28 per cent).
Retreat from France
France has been one of the biggest casualties in asset allocation terms over the past year. BlackRock Greater Europe decreased its exposure to France substantially, with European Investment Trust also taking money off the table. Outside the European sectors, Polar Capital Global Healthcare Growth & Income was notable in withdrawing money.
Annabel Brodie-Smith, communications director at the AIC, said: "As leaders prepare to gather for the G8 summit, it's interesting to look at how asset allocation has changed over the past year. Many G8 countries have borne the brunt of the global financial crisis and there have been some significant asset allocation changes.
"While it's useful to look at asset allocation changes, it's worth remembering that they do not tell the whole story. For example, an investment company often reduces or increases exposure to a certain country due to individual company fundamentals, not geographical fundamentals, and countries that have struggled may well have strongly performing companies. It's important that investors do not look at any one piece of information in isolation."
