Investec Asset Management has added the Pan-European fund to its range of select funds.
This offshore fund is denominated in euros and aims to provide capital growth by investing in Europe excluding the UK. It invests in a concentrated portfolio of between 30 and 40 stocks, which is the preferred style of its fund manager, Albert Morillo.
Morillo and his team are part of BlackRock, a fund management company based in New York, that has managed Investec's three existing European funds since April 2000. Morillo's aim is to outperform the market and this involves adapting to a growth or value style of stockpicking in line with market forces.
Concentrating on a tight portfolio of stocks increases the potential rewards for investors if the selected stocks are good performers. However, this approach also carries higher risks because the number of stocks is so small and the fund manager has less leeway to make the wrong choice.
The Pan-European fund may attract attention from experience investors who are looking for an offshore European fund that is more aggressive than some European funds that invest in a greater number of stocks. Although the performance of global stockmarkets has been unimpressive lately, investors may reap the rewards when the winds of change start blowing in Europe's favour.
According to Standard & Poor's, the Investec GSF continental European fund is ranked 20 out of 53 funds based on £1,000 invested on a bid to bid basis with gross income invested over three years to May 28, 2001.