New Star Asset Management has introduced the European growth fund, an open-ended investment company that aims for capital growth by investing in Europe excluding the UK.
The fund is managed by Richard Pease, who managed Jupiter Asset Management's European fund between January 1990 and December 2000.
As New Star's recently appointed head of European equity management, he will select stocks on their individual merits and will not be restricted by predetermined weightings for country or sector.
Share prices are low because of recent falls in global stockmarkets and the low interest rate environments of the UK and the US have also had a knock-on effect. Some investors may still be lacking in confidence now that the technology, media and telecommunications bubble has burst. However, the timing of this fund means that they will get more stocks for their money than they would have had during a buoyant period and they could be in a good position once share prices rise again.
The fund would be suitable for investors who are looking for a core European fund for their portfolio, perhaps as an individual savings account (Isa) or personal equity plan (Pep) transfer.
According to Standard & Poor's, the New Star GF European fund is ranked 64 out of 263 funds based on £1,000 invested on a bid to bid basis with gross income reinvested over one year to June 25, 2001.