Exeter Fund Managers has introduced the international growth portfolio, a fund which is available for Pep transfers.
This unit trust invests in three of Exeter's existing global funds managed growth, Pacific growth and global opportunities. Half of the portfolio is invested in the managed growth fund, which is a medium risk fund of investment trusts. A quarter of the fund is invested in the global opportunities fund, which is racier than the managed growth fund because it invests in warrants.
The final quarter of the international growth portfolio fund is invested in the Pacific growth fund, which focuses on the more riskier Far East sector. This msrket takes advantage of the change in Pep rules on April 6, 2001, which relaxed the geographical restrictions on Pep investments.
The international growth portfolio fund could be attractive to Pep investors who already invest in the UK and who want the diversity of a global fund to spread investment risk. However, the fund has higher risks than some global funds because of its exposure to the volatile Far Eastern market.
According to Standard & Poor's, the Exeter global opportunities, managed growth and Pacific growth funds were all top quartile performers based on £1,000 invested on a bid to bid basis with net income reinvested over three years to April 6, 2001.