JP Morgan Fleming Asset Management has introduced the JPM Europe smart index fund.
The fund is Luxembourg-based and is aimed at cautious investors who are looking to add a European fund to their existing portfolio. It is denominated in Euros.
JPM Europe smart will partly track the MSCI Europe index, and will partly be managed by team of 16 analysts. They will seek to identify companies that have long term investment potential. The fund team will cover a wide range of sectors, from telecommunications and technology to pharmaceuticals and oil, with the emphasis on low risk companies.
Passive funds that contain a degree of active management are not a new idea and have become increasingly common in the last few months as they offer a halfway house between active and passive management. However, like many other stockmarkets, Europe has seen its share of market volatility and it is uncertain when this will end.
According to Standard & Poors the JPM Europe equity fund is ranked 128 out of 151 funds, based on £1,000 invested on a bid to bid basis with gross income reinvested over three years to April 2, 2001.