this investment fund outperforms the global index

Although growing levels of debt and elevated political uncertainty, alongside heady valuations for some stocks, suggest the US stock market’s growth potential is now somewhat more limited than it was a year ago, an ongoing strong economic performance and the prospect of interest rate cuts mean further capital gains are likely to be ahead for investors. 

While the trust’s shares trade at a 2pc premium to net asset value and it currently does not employ gearing at a time when other companies offer wide discounts and utilise substantial borrowings to magnify their returns, its track record of outperformance suggests it remains a sound long-term option.

Well-known businesses such as Microsoft, Amazon and Nvidia are among the trust’s largest holdings in a portfolio that typically numbers between 50 and 90 stocks. 

Although it has the aforementioned overweight position in US-listed equities, as well as a four percentage point underweight to Japan’s stock market, the trust uses a bottom-up strategy that is not driven by a company’s listing location or sector. 

This means its performance could materially differ from that of its benchmark, which in Questor’s view is ultimately the whole point of investing in actively managed funds. Otherwise, a tracker fund would produce a very similar result at a potentially lower cost and with significantly greater diversification.

Despite its large exposure to the low-yielding US stock market, the company’s dividend yield currently stands at a respectable 3.1pc. 

Its shareholder payouts have risen by 8pc per annum on a per share basis over the past four years, thereby making it a very realistic income investing option, with the company aiming to pay out at least 4pc of its previous year’s NAV as a dividend each year.