A diverse portfolio of mid and small-cap European (ex UK) equities.
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.
Sector | European Smaller Companies |
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Structure | UNIT TRUST |
Launched | August 2012 |
Size | £757m |
Yield | 1.3% |
Charging Basis | Income |
Dividends paid | 30 Apr, 31 Oct |
Standard Initial Charge | 0% |
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Initial Charge Via BestInvest | 0% |
Additional Bid/Offer Spread | 0% |
Annual Management Charge | 0.75% |
Ongoing Charges Figure | 0.8% |
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.
Past performance is not a guide to future performance. View full risk warning