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BlackRock Continental European Income D GBP Hgd

Bestinvest LogoLarge and mid-cap European (ex UK) equity fund with an attractive yield.

PRICE (INC)

122.4p

PRICE (ACC)

155.24p

INITIAL CHARGE

0%

ANNUAL MANAGEMENT CHARGE

0.75%

ONGOING CHARGE

0.94%

YIELD

4.2%

1 YEAR
-5.06%

Prices as at 16 Aug 2022.

Fund commentary last updated 22 Nov 2021.

Past performance is not an indication of future performance.

Capital at risk.

The fund aims to deliver a high income – at least 10% above the European market yield – as well as capital growth by investing in European (ex UK) companies. Portfolio managers Andreas Zoellinger and Brian Hall take a conservative investment approach, targeting steady growth and low-risk cash returns. Their bottom-up process involves splitting companies into three buckets – ‘above average yielders’ which yield over 4%, ‘steady growth’ delivering around 3% and the ‘unique franchises’ generating less than 2%. They invest predominantly in large cap stocks with a market value of over £10billion but also targets medium and occasionally small-cap companies. Their holdings include Danish pharmaceutical company Novo Nordisk and champagne and luxury fashion group LVMH.

Fund summary

SectorEurope Excluding UK
StructureUNIT TRUST
LaunchedSeptember 2015
Size£1,406m
Yield4.2%
Charging BasisCapital
Dividends paid31 Jan, 30 Apr, 31 Jul, 31 Oct

Charges

Standard Initial Charge0%
Initial Charge Via BestInvest0%
Additional Bid/Offer Spread0.2%
Annual Management Charge0.75%
Ongoing Charges Figure0.94%

Investment Process

The fund’s investment universe comprises around 300 to 350 continental European companies with a market value over £1billion. Zoellinger and his team select stocks from amongst buy-rated recommendations made by the BlackRock European team. The fund’s management team wants companies with reliable dividends, strong corporate governance, a strong competitive position, financial discipline, and earnings stability. Zoellinger and Hall avoid highly volatile stocks. The portfolio includes three types of business – ‘high yielding’ companies where the dividend is secure, ‘stable quality’ companies offering solid dividends and highly predictable dividend growth and ‘structural winners’ offering high dividend growth but lower current yields. There is no yield requirement for individual stocks, though the managers avoid stocks with no imminent dividend. Indeed, Zoellinger will consider selling stocks if there is uncertainty about the next dividend payment. He is not a fan of holdings who “won’t pay” rather than “can’t pay”. The portfolio is concentrated holding around 40 stocks with the typical weighting being around 4%.

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