Resolution launches two new Euro funds

Resolution Asset Management is launching a Pan-European and a European Smaller Companies fund in October.

The fund launches come on the back of the overhaul of the £112m European Growth fund and the restructure of the European equities desk.

ResolutionAsset European Smaller Companies fund, a high conviction portfolio, aims to deliver long-term capital growth through a portfolio of 30-50 stocks.

The fund, a UK domiciled unit trust, will be run by Ian Ormiston who joined Resolution from Singer & Friedlander at the start of the year.

Totally unconstrained, it will have no sector or country restrictions, allowing Ormiston to zero weight sectors where prospects are particularly poor.

The fund will aim to outperform the HSBC Smaller Europe (ex UK) index by three per cent per annum on a rolling three-year basis.

Meanwhile, the Resolution International Pan-European fund, a Dublin-based SICAV, will seek out the most attractive 30-70 ideas across the UK and Continental Europe using the European team’s undervalued growth process.

Jon Fearon, who joined Resolution from Gartmore in September 2006, will be lead manager on the fund, which will be benchmarked against the MSCI Europe (total return) index.

Adrian Darley, head of European equities, says: “Europe has a strong underlying economy, inefficient equity markets and a pool of companies becoming more and more shareholder friendly, so it makes sense for us to launch products designed to exploit the exciting opportunities that we continue to find.”

Jonathan Polin, director, Resolution Asset Management, says: “It was always our intention to expand the European product offering once our existing European assets had been restructured, and the team has done a great job in turning around performance. The new funds are ideally suited to the team’s bottom-up, research driven investment style and we believe they will do very well in the coming years.”

The team of Adrian Darley, Jon Fearon and Ian Ormiston took over the ResolutionAsset European Growth fund in late 2006. The fund has gone from the 4th to 2nd quartile, returning 5.7% per year to date.

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