Ignis converts American Growth into best ideas fund

Ignis has restructured its American Growth portfolio into a best ideas fund in an effort to boost performance and differentiate it from US tracker funds.

Head of US equities Terry Ewing has cut the number of holdings from 75 to 53, with a view to reduce it further to around 45 stocks. The fund's tracking error has also increased as stock positions become more constrained. Ewing says: "We have altered the shape of the portfolio as we wish to have more of a best ideas fund with fewer holdings and a more focused, constrained approach. "We have recognised the market has moved and more people are making use of ETFs and index tracker funds in the retail market. However, we think the way forward is to provide a higher alpha type product and s...