Bestinvest says
Though relatively young, manager Leon Howard-Spink has already built up an impressive record over a number of years. He benefits from the considerable resource of Schroders' Pan-European equity team which aids him in monitoring a broad universe of stocks although he is very much his own man. The focus on the highest quality companies and diversification across sectors means that this fund is typically less volatile than many of its peers. The manager's style is appropriate for a core European equity holding. Potential new investors should be aware that Schroders have stopped marketing this fund actively, although we do not believe that current Assets Under Management (AUM) should be a concern for existing unit holders.
This fund invests in European companies, from large to small cap, with the aim of providing capital growth. With no benchmark constraints, it has a high performance mandate. As such, the fund can be considered as a best ideas portfolio. The manager looks to add value by applying rigourous fundamental analysis. He looks to buy companies which are trading at a significant discount to their intrinsic value. Such companies are normally characterised by strong free cash flow generation and high return on capital employed. The manager also targets takeover opportunities within consolidating industries. He is assisted by Schroders' team of Pan European analysts managed by Rory Bateman, who is also a fund manager, although Spink is very much his own man. The manager maintains a broad exposure to stocks from all sectors and countries in the region, believing that diversification within a stockpicking framework is the most effective way to reduce risk and ensure positive returns over time.