Rothschild Asset Management has added the European balanced income & growth fund to its Five Arrow International managed fund range.
Listed in Guernsey as an offshore unit trust, the product is based on the existing Swiss franc denominated European balanced income and growth, but is available in Euros. Rothschild is pitching the fund at European investors who are looking to avoid currency fluctuations by investing in a Euro denominated product and who are looking for a product that offers income and growth.
European balanced income and growth will invest in a wide spread of sectors. Sixty-eight per cent of the fund will invest in European funds from investment companies such as Henderson, Gartmore, Morgan Stanley and Invesco. The rest of the fund will offer access to funds that invest in Japan, the UK, emerging markets, Asia and the US.
Using a wide range of funds that have a spread of fund managers using different investments approaches could appeal to many investors, as this should spread out the level of risk. During a period of economic turbulence this approach will have added appeal as many investors may not want to put their eggs in one basket.
According to Standard & Poors the Swiss franc denominated European balanced income & growth fund is ranked 3 out of 9 funds, based on £1,000 invested on a bid to bid basis with gross income reinvested over three years to April 23, 2001.