Royal & SunAlliance has applied the stockpicking techniques of its UK prime fund to Europe.
The European prime fund is an open-ended investment company (Oeic) that aims for growth by investing in around 30 European stocks. The company believes a concentrated portfolio of stocks will help investors attain the high levels of return they were used to during the strong bull markets of the 1990s.
This belief is the reason for the aggressive management style the fund will adopt. Stockpicking is based on identifying and exploiting the differences between stocks within the same sector and geographical region.
The fund manager, Davina Curling, will work from the premise that stocks within the same region and sector are not identical. Some will produce higher returns than others and it is Curling's job to choose the winners while avoiding the losers.Curling joined Royal & SunAlliance in 1995 and has managed its European Oeic for the past six years.
The European prime fund would suit investors who already have a general European fund in their portfolio, but who want to place a smaller proportion in a higher risk fund which offers the potential for higher returns.
However, stockmarkets have taken a hammering recently and the feeling of uncertainty may have quenched some investors' thirst for riskier funds like this.
According to Standard & Poor's, the Royal & SunAlliance European fund is ranked 28 out of 87 funds based on £1,000 invested on a bid-to-bid basis with net income reinvested over three years to September 24, 2001.