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BlackRock European Dynamic FD

Bestinvest LogoA large and mid-cap Europe (ex UK) equity fund targeting a high level of outperformance.

PRICE (INC)

212.03p

PRICE (ACC)

225.14p

INITIAL CHARGE

5%

ANNUAL MANAGEMENT CHARGE

0.75%

ONGOING CHARGE

0.92%

YIELD

0%

1 YEAR
-12.02%

Prices as at 01 Jul 2022.

Fund commentary last updated 19 Jan 2022.

Past performance is not an indication of future performance.

Capital at risk.

The fund targets long-term capital growth through investment in large and mid-cap continental European companies. Manager Giles Rothbarth looks for companies that are either undervalued by the market or have good growth potential, though through most of his tenure the fund has displayed a bias to growth and quality. He is backed by the BlackRock Fundamental European Equity Team, which has over 230 years of collective investment experience and uses both bottom-up and top-down analysis when selecting stocks. His portfolio, which typically has between 35 and 65 stocks, includes luxury goods company LVMH and semiconductor group ASML.

Fund summary

SectorEurope Excluding UK
StructureUNIT TRUST
LaunchedNovember 2013
Size£4,699m
Yield0%
Charging BasisIncome
Dividends paid30 Apr

Charges

Standard Initial Charge5%
Initial Charge Via BestInvest0%
Additional Bid/Offer Spread0.2%
Annual Management Charge0.75%
Ongoing Charges Figure0.92%

Investment Process

The investment universe for the fund is large and mid-cap European equities, though some UK and US stocks may also feature in the portfolio. The typical minimum market capitalisation is around £1billion with over three-quarters of holdings valued over £10billion. The targeted stocks are put into four defensive sectors – Consumer, Financial, Healthcare, and Industrial – which are each covered by a “research pod” led by a senior fund manager/analyst on BlackRock’s European equity team Investment ideas are sourced from screens looking at valuation metrics and earnings momentum, from sector analysts, company meetings and after considering factor and thematic trends. The analyst team then carries out fundamental research on each stock. This predominantly bottom-up and focuses on whether the company can create wealth for its shareholders, is resilient through economic cycles and whether it can evolve to drive future earnings and cashflow. The team also looks at economic factors, including analysis of consumer footfall or credit card spending from BlackRock’s data team. They also consider structural changes in the global economy such as technological disruption. ESG is also embedded in the process, looking at issues including carbon emissions and labour standards. Each stock is given a rating from 1-5 based on risk-adjusted conviction and the target price, calculated on a 12-month time horizon - 1 (strong buy), 2 (buy), 3 (hold/neutral), 4 (negative) and 5 (very negative). Portfolio managers then have to determine whether recommended stocks are suitable for their portfolios. Rothbarth typically uses 1 and 2 rated stocks, though he occasionally buys 3-rated stocks on positive news rather than wait for the analyst to change the rating.

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