Henderson Investors has brought in the Henderson European micro trust, an investment trust aimed at investors who are looking for long term growth and who are happy with high-risk funds.
The investment trust will invest in a portfolio of small European companies that each have market capitalisations of up to £250 million. The portfolio will consist initially of up to 20 companies, mostly based in Western Europe and this will expand to up to 50 companies across the market.
Investing in small companies which have small amounts of assets behind them is potentially risky, as these companies are potentially financially fragile in the event of an economic downturn. However by investing in a large portfolio that covers a wide range, this should reduce the risk.
According to Standard & Poors the Henderson Eurotrust fund is ranked 3 out of 12 funds, based on £1,000 invested on a bid-to-bid basis with gross income reinvested over three years to September 15, 2000.