fund

Rated

This is one of our rated funds. They’re the ones our experts believe will do well for investors over the longer term. Top of the class!

BlackRock European Dynamic FD

A very actively managed fund of mainly large and mid-cap Europe (ex UK) equities.

  • 189.60p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 199.90p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 5.00% 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.75%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.93%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 0.60%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 23 January 2020, fund data last updated 04 February 2019

The fund targets capital growth through investment in large and mid-cap continental European equities. Managers Alister Hibbert and Giles Rothbarth aim to outperform in all market conditions and to this end employ a flexible approach. They builds the portfolio around a core of high quality stocks they believes can provide growth over the long-term. However, around this they will rotate the portfolio into different types of companies depending on their shorter-term view of the market. As a result portfolio turnover is high compared to the peer group.

Fund summary

Sector Europe Excluding UK
Structure UNIT TRUST
Launched November, 2013
Size £3,677m
Yield 0.60%
Charging basis Income
Dividends paid 30 Apr

Charges

Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.21%
Annual management charge 0.75%
Ongoing charges figure 0.93%

Allocation

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Investment process

The investment universe is large and mid-cap European equities, though some UK and US stocks may also feature. Stocks are allocated by sector, with each sector covered by a “research pod” led by a senior analyst on BlackRock’s European equity team. Ideas are sourced from screens on valuation metrics and earnings momentum, from sector analysts and from factor and thematic trends. The analyst team then carry out fundamental research on each stock, giving them ratings from 1-5 based on risk-adjusted conviction and a target price. Portfolio managers then have to determine whether recommended stocks are suitable for their portfolios. Hibbert typically has a core portfolio of high quality stocks, in defensible industries, that he believes will be able to grow above the level implied in their share price. However, around this he rotates the portfolio depending on his shorter-term view of markets. As a result, portfolio turnover is typically high, particularly when there is a “regime change” in economic growth. Hibbert describes his approach as flexible and will invest in both growth and value stocks, though through most of his tenure the portfolio has displayed a bias to growth and to quality.

Alister Hibbert was building up an impressive track record at Scottish Widows Investment Partners before jumping ship to BlackRock in 2008. Since then his results have been even more impressive. His fund can be risky compared to some peers, with volatility typically in line with the index. However, Hibbert has at times positioned the fund more defensively. The pragmatic approach and active trading provide a degree of differentiation from rival funds. The strong performance attracted substantial inflows and the fund was closed to new investors in 2013. However, it reopened (FD share class only) in August 2014. Giles Rothbarth was appointed co-manager in 2019 having worked on the fund since 2015.

Manager research

Average monthly relative returns

  • 15/16 0.00%
  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.56%
  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.00%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Alister Hibbert / Giles Rothbarth

Hibbert graduated with a BSc in Economics from Bristol University in 1992. He began his career in 1994 as an accountant at Ernst and Young, before joining GT Fund Managers (later acquired by Invesco Perpetual) in 1996. He worked as a European equity portfolio manager at Oechsle International from 2004-5 and then at Scottish Widows Investment Partnership (SWIP) from 2005-8. In 2008 he moved to BlackRock with many of his peers from SWIP. At BlackRock he is a managing director and portfolio manager on the European Equity team, as well as having analyst responsibilities on the financials sector. Rothbarth, CFA, Director and portfolio manager, is a member of the European Equity team within the Fundamental Equity division of BlackRock’s Active Equity Group. He is responsible for European Financials and has joint responsibilities on Continental Europe ex UK portfolios across the team. Prior to his current role, he worked with the UK Specialist Team with responsibility for the utilities and the oil & gas sectors. He joined BlackRock in 2010, following a MA (Hons) degree in Philosophy, Politics & Economics from Oxford University, from which he graduated the same year.

Track record

The track record of Alister Hibbert / Giles Rothbarth in managing mutual funds in this sector is still too short for us to draw any meaningful conclusions and so our assessment is based largely on qualitative aspects.

Periods of worst performance

Absolute -2.00% (July 2019 - September 2019)
Relative -2.00% (June 2019 - September 2019)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 30 November 2019

6.2216% Lvmh Moet Hennessy Vuitton Se
6.0519% Sap Se
5.1878% Safran Sa
4.615% Asml Holding Nv
4.0536% Sika Ag
3.9209% Novo-Nordisk As
3.8706% Dsv Panalpina As
3.8471% Airbus Se
3.5307% Ferrari Nv
3.2245% Lonza Group Ag
Source: Trustnet

Sector breakdown

Industrials 23.00%
Consumer Goods 22.00%
Technology 21.00%
Health Care 16.00%
Financials 7.00%
Oil & Gas 3.00%
Utilities 3.00%
Basic Materials 2.00%
Money Market 1.00%
Consumer Services 1.00%

Portfolio

35-65 stocks. Typical holding period is one year, although the size of the holding is likely to vary.

Constraints

Tracking error is typically managed within a range of 4-10%. New ideas are likely to be built up from a 2-3% holding to max 5% in any one stock. Max 5% UK stocks. Max 15% non-index stocks. Max 10% cash.

Key Investor Information - Income

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Key Investor Information - Accumulation

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