The New Desjardins Europe Fund: for investments without borders

    MONTREAL, Oct. 26 /CNW/ - The Mouvement Desjardins has added an equity
fund to its range of international investment funds: the Desjardins Europe
Fund.  Created and administrated by Desjardins Trust, this Fund was designed
to obtain the full advantage of European economic growth.  With the coming of
the euro, Europe's new common currency on January 1, 1999, this Fund might
well constitute an historic occasion not to be missed. The single European
currency should have a favourable effect on trade by eliminating currency
barriers among member countries.  According to expectations, this should
promote business prosperity, producing a positive effect on European stock
markets.
    In a context where Canada represents only 2.5% of world capitalization,
in comparison with 50% for the United States, 12% for Asia and 32% for Europe,
the new Fund offers an interesting geographical distribution for investors who
want to participate in the growth of European markets.  Between 1970 -- the
year of its creation -- and 1997, the Morgan Stanley Europe index, which
covers several western Europcan countries including the United Kingdom, France
and Germany, posted 5-year returns above 15% on eight separate occasions.  As
an example, for the five years ended December 1997, the Morgan Stanley Europe
index showed a 22.08% return.
    The Desjardins Europe Fund comprises a high level of risk and calls for
an investment horizon of at least 5 years.  It is intended for seasoned
investors who are able to tolerate risk and who demand a high potential for
return, building on the geographic diversification of their portfolio. A
comparative study of stock markets has shown that periods of growth happen at
different times throughout the world, and the extent of growth also varies.
Investors therefore maximize the potential for return while taking advantage
of the market desynchronization factor.
    Canagex has been mandated to manage the Desjardins Europe Fund.  As is
the practice for international equity funds, Canagex has chosen an associate,
Delaware International Advisers, a London-based portfolio management firm.  A
subsidiary of Delaware Advisers of Philadelphia, the company is recognized for
its expertise in international equity management.  With its management style,
Delaware looks at long-term returns that enable it to rank in the first
quartile.
    The Desjardins Europe Fund, the 18th addition to the range of Desjardins
Funds, is RRSP-eligible for up to 20% of the registered assets.  The Fund may
be combined with the Desjardins American Market Fund, which is 100%
RRSP-eligible to geographically balance an investments portfolio, It can be
obtained starting today at all participating Desjardins caisses, Desjardins
Trust, through D-Access or by visiting the Desjardins web site at
www.desjardins.com.

                         	    Desjardins Europe Fund
                            	    Technical Sheet

    General characteristics
    The Desjardins Europe Fund is an international equity fund which enables
investors to fully profit from international economic growth by maximizing the
return potential offered by market desynchronization.  The risk level of this
fund is high and the investment horizon is at least 5 years. RRSP-eligible for
up to 20% of registered assets, the Desjardins Europe Fund is also available
for Group plans and the RESP.

    Investment objectives
    To achieve long-term capital appreciation using a portfolio composed of
shares in corporations listed on European stock markets.

    Portfolio distribution
    The portfolio distribution is established using a European stock index
with weighting according to the Desjardins Trust investment policy.  The
manager's leeway is 15%.

    - For the start of the Fund's activities, the geographic distribution is:
      United Kingdom          47%
      Germany                 17%
      France                  12%
      Holland                 11%
      Spain                   9%
      Belgium                 4%

    Pricing policy
    Management fees are charged to the Fund at a rate of 2.25% which is
comparable to the competition. There are no load fees.  The initial sale price
is $10 per unit.

    Purchase procedure
    Desjardins Europe Fund units may be purchased in all the Desjardins
caisses, at Desjardins Trust, through D-Access or by visiting
www.desjardins.com The minimum initial outlay is $1,000 and the minimum
subsequent deposit is $50.  However, the investment by instalments plan makes
it possible to purchase units for a minimum of $50 per month.

For further information: Lise Perras, BDDS Group, (514) 393-1180;
Source: Hélène Gagné, Director, Communications, (514) 286-3100, ext. 2330

News release courtesy Canada NewsWire.

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