MFS International has introduced the MFS continental European fund, an Oeic that invests in Europe excluding the UK.
The fund is a mirror of an offshore fund, the MFS European equity fund. It aims to produce capital growth by investing in a portfolio of around 65 stocks and is managed by the same team of eight analysts as the existing offshore fund.
The analysts will look at companies of all sizes, including developing companies that have the potential to grow. However, the main focus will be on larger, established companies that look undervalued. Each analyst will specialise in different sectors and they will examine financial statements, visit companies and speak to the management teams of companies to come up with their best stock ideas for the fund's portfolio.
The European market has been in the doldrums for the last couple of years following the bursting of the technology bubble and investors who take a three to five year view could take advantage of a recovery.
However, with many European funds on the market, investors may prefer to go for an established fund that has a good track record rather than taking a risk on a new fund offered by a company that has just entered the UK retail market like MFS Investments.
According to Standard & Poor's the MFS European equity fund is ranked 29 out of 287 funds based on £1,000 invested on a bid-to-bid basis with gross income reinvested over one year to December 17, 2001.