Lombard Odier is boosting its presence in the UK with the introduction of its LO Invest UK Europe fund.
This Luxemburg based Sicav was set up by the Swiss bank as a UK clone of the LO Invest Europe fund, which is distributed only in Switzerland. The fund aims to provide growth by investing in large cap companies in Europe, including the UK.
The stocks chosen cut across a range of sectors, which diversifies investment risks, but technology and financials are favourites at the moment. The current top ten holdings include companies such as Vodafone, Nokia and Deutsche Bank.
The fund would suit investors who want to follow this year's trend for European funds, combined with the tax advantages of an offshore investment.
Despite a degree of diversity, the LO Invest Europe fund is overweight in European technology stocks and this might not suit every investor's taste. Technology was not looking good at the close of 2000, particularly as the value of the Nasdaq 100 kept falling.
However, Europe is a world leader in mobile communications and is ideally placed to take advantage of the growing demand for mobile phones and related technology. Many technology stocks are now undervalued, which could provide value for money if there is a rally in the sector.