Rothschild Asset Management has added a Euro denominated fund of funds to its Five Arrows International Managed Portfolio range.
The European Capital Growth fund is similar to the existing Swiss franc denominated fund of the same name. It invests in a range of funds from different fund management groups. The fund manager chooses European funds that are seen as the best in their sector and this also ensures that investors have a diverse portfolio.
The fund of funds approach means that investors can take advantage of the strengths of different fund managers rather than putting all their investments into one fund manager's basket if they are underperforming.
The erratic performance of the stockmarket may have left investors feeling wary at the moment but it means that quality stocks are available at cheaper prices. The fund of funds approach could persuade investors to put their faith in the best European performers.
However, investors should be aware that the Euro denomination of the fund carries currency risks when converting into sterling.
According to Standard & Poor's the Swiss franc denominated Five Arrows IMP European Capital Growth fund is ranked 61 out of 284 funds based on £1,000 invested on a bid to bid basis with net income reinvested over three years to March 30, 2001.
