DIY Investor Magazine
| August 2017
9
McDonald’s revenues of 5.68bn USD also exceeded
analysts’ forecasts and helped super size the shares
to an all-time high. Despite some criticism of the chain
in some quarters, the world shows no sign of losing
its appetite for McDonald’s and the shares form part
of a balanced portfolio within JPMorgan American
Investment Trust plc.
HEALTHY, WEALTHY AND WISE
The United States of America is not just the wealthiest
country on earth in terms of its total financial assets but
also the biggest spender on healthcare. This is likely to
continue to grow as more Americans reach advanced
ages when the need for healthcare tends to be greater
than when people are younger and fitter. As a result,
some of the leading medical and pharmaceutical
companies in the world are based in America. While
the price of some drugs and treatments has attracted
controversy recently, the demand for healthcare is
unlikely to diminish.
Investors who capitalise medical research and
development may continue to do well by doing good.
These are among the reasons JPMorgan American
Investment Trust plc includes among its top 10 holdings,
stakes in Amgen, Gilead Sciences and Human a. This
trust can also include substantial exposure to smaller
companies, whose names may be less familiar but
where the prospects for growth may be greatest.
However, not every acorn grows into an oak and smaller
companies can involve a greater degree of risk – so
fundamental analysis and professional stock selection
can add value.
AMERICA FIRST FOR GLOBAL GAINS
Many of the corporate giants based in America do
business around the world – including most of the
examples above. Some smaller companies in America
also offer prospects for substantial capital growth.
So it makes sense to consider gaining exposure to
the world’s biggest economy as part of a diversified
portfolio. This strategy would have been likely to
generate substantial gains as American stock markets
and many of their constituent companies hit all-time
highs in 2017 and may continue to do so.
However, there is no guarantee that this will happen.
Investment trusts can offer a convenient and cost-
effective way to diminish the risk inherent in stock
markets by diversification and seek to maximise
rewards. Professional fund managers can analyse the
balance of advantage as they allocate assets across a
range of companies and sectors. This should diminish
individual investors’ exposure to setbacks or failure while
maximising their exposure to growth opportunities in the
world’s leading economy.
Investors should remember that share prices can fall
without warning and that you may get back less than
you invest. However, investment trusts seek to diminish
the risk inherent in stock markets by diversification and
professional fund management. There are hundreds of
investment trusts to choose from. For more details see
the Association of Investment Companies.
To find out more about our US investment
capabilities visit
Important information
Diversification does not guarantee investment returns and does not eliminate the risk of loss. The companies/
securities above are shown for illustrative purposes only. Their inclusion should not be interpreted as a
recommendation to buy or sell. J.P. Morgan Asset Management may or may not hold positions on behalf of its
clients in any or all of the aforementioned securities. Past performance is not necessarily a reliable indicator of
current and future performance.
This is a promotional document and as such the views contained herein are not to be taken as advice or
recommendation to buy or sell any investment or interest thereto. Reliance upon information in this material
is at the sole discretion of the reader. Any research in this document has been obtained and may have been
acted upon by J.P. Morgan Asset Management for its own purpose. The results of such research are being
made available as additional information and do not necessarily reflect the views of J.P. Morgan Asset
Management. Any forecasts, figures, opinions, statements of financial market trends or investment techniques
and strategies expressed are unless otherwise stated, J.P. Morgan Asset Management’s own at the date of
this document. They are considered to be reliable at the time of writing, may not necessarily be all-inclusive
and are not guaranteed as to accuracy. They may be subject to change without reference or notification to
you. It should be noted that the value of investments and the income from them may fluctuate in accordance
with market conditions and taxation agreements and investors may not get back the full amount invested.
Changes in exchange rates may have an adverse effect on the value, price or income of the products or
underlying overseas investments. Both past performance and yield are not a reliable indicator of current and
future results. There is no guarantee that any forecast made will come to pass. Furthermore, whilst it is the
intention to achieve the investment objective of the investment products, there can be no assurance that those
objectives will be met.
J.P. Morgan Asset Management is the brand name for the asset management business of JPMorgan
Chase & Co and its affiliates worldwide. You should note that if you contact J.P. Morgan Asset Management
by telephone those lines may be recorded and monitored for legal, security and training purposes. You
should also take note that information and data from communications with you will be collected, stored and
processed by J.P. Morgan Asset Management in accordance with the EMEA Privacy Policy which can be
accessed through the following website
Investment is subject to documentation (Investor Disclosure Document, Key Features and Terms and
Conditions), copies of which can be obtained free of charge from JPMorgan Asset Management Marketing
Limited. Issued by JPMorgan Asset Management Marketing Limited which is authorized and regulated in the
UK by the Financial Conduct Authority. Registered in England No: 288553. Registered address: 25 Bank St,
Canary Wharf, London E14 5JP. f7d885e0-451d-11e7-9bc7-005056960c8a
