Morgan Stanley Dean Witter has extended its range of Sicav funds with its emerging European markets fund.
The fund aims for capital growth by investing in the former Soviet Union, the middle East and north Africa. It will also invest in developing European countries including Hungary and Turkey.
Diversity is ensured through a mixture of telecommunications and technology stocks and investing in countries with natural resources.
The emerging Europe fund is more suitable for investors with a long-term view and who are prepared to put up with high volatility in the pursuit of potentially high returns. It is likely to attract investors who want some exposure to higher-risk investments as part of a wide portfolio.
The political uncertainty in Eastern Europe provides an additional layer of risk for potential investors. However, there are few funds around with an Eastern European bias so this fund could exploit a gap in the market in this respect.
According to Standard & Poor's, the MSDW Sicav European equity growth fund is ranked 80 out of 232 funds based on £1,000 invested on a bid-to-bid basis with gross income reinvested to October 23, 2000.