Alliance Capital Management has introduced the European value portfolio, one of the three new funds. The other two are the ACM American value portfolio and the ACM global value portfolio.
Registered in Luxemburg, the European value portfolio is a Ucits and is aimed at experienced investors who are willing to invest in a high risk fund that offers both growth and income. It is denominated in both Euros and US dollars.
European value will invest in 70 to 90 blue chip companies in Europe that ACM feels are undervalued and have the potential for their share prices to increase. The stocks chosen will be from a maximum of 20 European countries and from a wide range of industries.
Like the UK, Europe's economy is closely tied to the US. Over the past month, a number of US based companies have announced job cuts in Europe. Fibreoptic supplier JDS Uniphase is cutting up to 950 jobs in Britain, financial services company Citigroup is cutting up to 300 jobs all over Europe, and Disney is cutting 3,000 jobs worldwide, including Eurodisney.
According to Standard & Poor's the ACM European growth fund is ranked 181 out of 283 funds, based on £1,000 invested on a bid to bid basis with gross income reinvested over one year to April 23, 2001.