Isle on Man based Royal Skandia has unveiled the US$ Pacific equity fund as a part of its new range of funds.
The fund is an international life fund and can only be accessed via a Royal Skandia life product. The fund has a medium level of risk and is aimed at investers who are looking for a product that offers long term capital growth. The fund is available for funds in US dollars, sterling, euros and Hong Kong dollars.
US$ Pacific equity will invest in companies based in countries around the Pacific rim, including China, Thailand, Australia, New Zealand and Singapore. It will not invest in Japan. It will not be focussed on any one particular investment sector, but will concentrate on large companies that are well established in the region. The exact investment split is not yet available.
Royal Skandia will run the fund, with the investment management being done by Fidelity. Its performance will be reviewed on a quarterly basis, so that in the event that the fund manager fails to perform Royal Skandia will look for a replacement.
Countries along the Pacific rim have been experiencing sluggish growth over the past few years. One reason for this has been the poor performance of the Japanese economy, which has been hit by political instability and a lack of a coherent economic policy. Although this fund does not invest in Japan, the countries around it have economies that are tightly tied to it, so that anything that happens in Japan ripples outward.
According to Standard & Poors the Royal Skandia £ Jardine Fleming Pacific security fund is ranked 6 out of 87 funds, based on £1,000 invested on a bid to bid basis with gross income reinvested over three years to May 28, 2001.