The Fund's investment objective is to achieve long term capital growth from a portfolio primarily made up of the shares of US companies. The portfolio is likely to have a bias towards larger and medium-sized companies, although the ACD is not restricted in its choice of company by either size or industry.
Over the quarter, the fund underperformed its benchmark, although it was in the first quartile relative to peers. Performance was undermined by stock selection in information technology. For example, a poor economic outlook hurt earnings expectations for Cisco. At a stock level, the correction in energy prices and a fall in profits dented onshore drilling contractor Nabors Industries, previously astrong performer.An overweight in construction and engineering company KBR also detracted amid economic growth concerns, although the firm reported good results and I believe it is attractively valued. Selected financial holdings contributed. An exposure to JPMorgan Chase buoyed returns, as it continued to acquire assets on very attractive terms. Lazard, a niche financial firm that operates in a merger and acquisition advisory role added value.It is also likely to gain market share at the expense of weaker competitors and has a strong balance sheet.