Cazenove Fund Management has introduced the European Smaller Companies Fund, a Dublin-based sub fund of the Cazenove international fund.
Aimed at experienced investors who are looking to get exposure to Europe, the fund is an open-ended investment company (Oeic) that will invest in small European companies that have the potential to grow rapidly. It will aim to outperform the HSBC Europe ex UK smaller companies index with the object of long-term capital growth.
The Oeic will aim to be overweight in technology, media and service companies and underweight in old economy companies, such as industrial and financial companies.
Despite the Euro having hit a new low against the US dollar on September 6, 2000, over the medium to long term Europe has a great deal of potential for growth, especially in the technology sector, which is less developed than in the US. Although the European smaller companies fund will have a medium to high risk level, it should provide good returns.
According to Standard & Poor's the Cazenove European fund is ranked 3 out of 91 funds, based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to September 4, 2000.