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Barings Europe Select I GBP

Bestinvest LogoA diverse portfolio of mid and small-cap European (ex UK) equities.

PRICE (INC)

4342p

PRICE (ACC)

106.8p

INITIAL CHARGE

0%

ANNUAL MANAGEMENT CHARGE

0.75%

ONGOING CHARGE

0.8%

YIELD

1.3%

1 YEAR
-19.21%

Prices as at 10 Aug 2022.

Fund commentary last updated 18 Nov 2021.

Past performance is not an indication of future performance.

Capital at risk.

The fund aims to generate long-term capital growth by investing in European, excluding UK, small and mid-cap companies. Lead manager Nick Williams and his team invest at least 75% of the fund’s assets into quality companies with a market value of less than €5billion. The managers believe that smaller companies tend to outperform larger firms and have higher long-term growth rates. In addition, smaller companies offer a more “diverse and idiosyncratic” group of stocks to choose from. The management team use a bottom-up, GARP (Growth At a Reasonable Price) process which focuses on companies with superior growth characteristics not fully reflected in the share price. Their holdings include Italian hearing aid group Amplifon and Belgium based Bentley car dealer D’leteren.

Fund summary

SectorEuropean Smaller Companies
StructureUNIT TRUST
LaunchedAugust 2012
Size£757m
Yield1.3%
Charging BasisIncome
Dividends paid30 Apr, 31 Oct

Charges

Standard Initial Charge0%
Initial Charge Via BestInvest0%
Additional Bid/Offer Spread0%
Annual Management Charge0.75%
Ongoing Charges Figure0.8%

Investment Process

The managers believe that coverage of small and mid-cap stocks has deteriorated in recent years, meaning there are greater opportunities to find attractive investments in this area. They look for growth stocks but at a reasonable price (GARP). The bottom-up process begins with a chunky investment universe of around 4,000 companies with a market value of less than €5billion. They look for companies with quality/GARP characteristics, a stable balance sheet and track record, high growth and return of equity with the potential to improve their numbers. The managers also seek companies with a credible strategy and a demonstrable track record of success. The team find suitable portfolio candidates using quantitative screening to assess liquidity, financial viability and GARP characteristics including accounting practices and ESG factors. In depth company research is also carried out with potential candidates presented to and debated by the investment team at regular meetings. They focus on those companies with a catalyst for outperformance over the next 9-12 months, with a 40% target upside. The portfolio typically holds around 100 names to maintain liquidity. Holdings may be jettisoned if the investment case changes or if a 40% rise triggers profit taking. Conversely a 10% fall could lead to a review of the company’s position in the fund.

The information on this website is not intended to be advice or a recommendation to buy, sell or hold any investment mentioned. The value of investments and the income from them can go down as well as up and you may not get back the amount invested.

Past performance is not a guide to future performance. View full risk warning