Chase Fleming Asset Management is bringing in the new European convergence fund.
Aimed at investors who want to get some exposure to Europe, the fund will invest in countries that are close to joining the European Union and which are preparing their economies to be compatible with joining the Euro.
These will initially include Poland, the Czech Republic and Hungary, along with a small amount of exposure to Estonia, all of which are currently being considered as the next wave of countries to join the European Union. However it could later expand to Slovakia, Bulgaria, Romania and Croatia, which are also being considered for membership in the near future.
Unlike many other Eastern European countries which have suffered severe economic traumas since the collapse of communism, Poland, Hungary and the Czech Republic have made the economic switch to market economies successfully. This fund will therefore have a low to medium risk element and should appeal to investors who are interested in the expansion of the European Union.
According to Standard & Poors the Chase Manhattan Vista Europe Eq A fund is ranked 39 out of 136 funds, based on £1,000 invested on a bid to bid basis with net income reinvested over three years to September 11, 2000.