The US currently offers more stable opportunities for investors than the fashionable emerging markets, according to Gervais Williams, investment director at MAM.

Williams points out that the US has performed better since the market crash and claims it is the best placed of all the more stable developed regions.

"We believe that US banks will be back lending in a year or so and this represents signs of a strong recovering economy," he said.

"I also think that QE3 shows that we are at the end of restructuring in the US economy and we can look forward to a well-rounded market." 

The manager believes investors who have opted for emerging markets in recent years have ignored volatility issues and only considered the positives.

"In the past, investors have tended to go for the fastest growth areas where asset prices have gone up massively," he said. 

"This was shown by the popularity of emerging markets a few years ago. Volatile markets have traditionally been favoured, but on the way down investors and advisers have been rocked and shaken around a lot."

"We see that stable economies such as western markets have been far more resilient. The US is one of them and it has been the market that has performed the best since the market crash in 2008." 

William heads up a number of funds, including The Diverse Income Trust and Acuim UK Multi Cap Income. He has more than 12 years’ experience of fund management and has also run Henderson UK & Irish Smaller Companies and Gartmore Growth Opportunities. 

According to FE Analytics, during his career he has tended to outperform his competitors. Over a 10-year period, Williams has returned 261.32 per cent compared with 188.47 per cent from his peer group average.

Performance of manager vs peer group composite



Source: FE Analytics

Williams’ confidence in the US market is illustrated by MAM’s decision to launch a new multi cap US fund, as yet unnamed. 

"At the moment, the small to mid cap US markets offer a very attractive proposition for investors," he commented. 

"This success has been shown by funds such as Findlay Park American, which have performed very well and now investors want to jump on this trend, especially after Findlay Park was soft-closed."

"This is why we will be launching our fund, to find attractive returns with a non-index based product," he finished. 

The fund will be up and running in early 2013. It will be run by Nick Ford, who currently manages the Scottish Widows American Select Growth, American Smaller Companies and SWIP North American funds. 

According to FE Analytics, Ford has outperformed a peer group composite in six out of eight rising markets. Since he began running Scottish Widows American Smaller Companies in late 2007, it has returned 52.83 per cent compared with 46.18 per cent from IMA North American Smaller Companies sector. 

Performance of fund vs sector over 5-yrs



Source: FE Analytics