Careful financial plays win out in troubled US sector

IMA North America sector takes a beating as credit crunch pressure hits banking system, as managers look to small caps and leisure as defensive bets

Many funds in the IMA North America sector have seen returns take a beating as the US banking system buckles under pressure from the credit crunch. The average fund in the sector lost 3.59% over the year to 15 September. Looking at the three-year figures, the picture is brighter, with the average fund gaining 7.32%, according to data from Morningstar. Top of the peer group over three years is Schroders US Small and Mid Cap fund, managed by Jenny Jones, delivering 28.26% over the period to 15 September. It is telling that a small cap-focused fund should top the sector, as its lack of...