Chicago-based Columbia Wanger Asset Management has launched two international open-ended equity funds, which seek to invest in companies with market caps under $5 billion.

Columbia Acorn Emerging Markets Fund invests at least 80 per cent of its assets in companies located in or primarily exporting to China, Brazil, India, and other emerging markets. Lead managers for the fund are Fritz Kaegi and Stephen Kusmierczak, and co-managers are Zach Egan and Louis Mendes.

“While most emerging markets funds invest in large-cap stocks that are dependent on world macroeconomics, Columbia Acorn Emerging Markets Fund is focused on smaller, more innovative companies, often serving  local consumers,” said Chuck McQuaid, chief investment officer at Columbia Wanger Asset Management. “We look for niche businesses that are more nimble and possess solid, long-term growth prospects.”

Columbia Acorn European Fund invests at least 70 per cent of its assets in western European countries. Up to 30 per cent of assets may be invested in emerging Central and Eastern European countries such as Poland and the Czech Republic, including up to 10 per cent in companies in Russia and the Ukraine. Andreas Waldburg-Wolfegg will be lead manager and Stephen Kusmierczak co-manager.

“Many smaller European companies enjoy dominant global positions in highly profitable niche markets,” said Zach Egan, director of international research at Columbia Wanger.

Columbia Wanger Asset Management, which is a subsidiary of Columbia Management, had $35.7 billion in assets under management at the end of June.