Aberdeen Asset Management has followed the trend for themed investments with the introduction of its European champions fund.
This unit trust aims to provide growth by investing in a concentrated portfolio of 50 European stocks that cut across sectors. The stocks will be chosen in relation to three themes – harmonisation, globalisation and communication.
Harmonisation refers to European countries building closer ties with each other, creating greater investment opportunities. Globalisation recognises that there are increased opportunities for European companies to export goods around the world, boosting their reputations beyond their own backyard. The final theme, communication, recognises that European companies lead the way in mobile communications whereas the US dominates the technology scene in other areas.
Europe is currently seen as a huge growth area, so the timing of the fund is good. It could suit investors who have a wide portfolio and who want to add a specialist fund with higher risks in return for higher potential rewards. But investors may not choose European champions if they have European technology funds as there might be considerable overlap between the funds.
According to Standard & Poor's, the Aberdeen European growth fund is ranked 45 out of 119 funds based on £1,000 invested on a bid to bid basis with net income reinvested over three years to February 16, 2001.