BlackRock European Dynamic FD

  • 205.40p
    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.

  • 218.10p
    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).

  • 0.92%
    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 29 October 2020, fund data last updated 27 February 2020

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 build the portfolio around a core of high quality stocks they believe 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 stock turnover is high compared to the peer group.

Fund summary

Sector Europe Excluding UK
Structure UNIT TRUST
Launched
Size £4,445m
Yield 0.60%
Charging basis Income
Dividends paid 30 Apr

Charges

Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.92%

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 into four sectors: Consumer, Financial, Healthcare and Industrial. Each sector is covered by a “research pod” led by a senior fund manager/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. The portfolio managers then 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.

Having run this fund since 2008 Alister Hibbert has one of the longest track records in the sector, and also one of the best. His more active approach means results are dependent not just on stockpicking but his ability to call markets, but to date he has done this successfully. He protecting investors on the downside in 2008 then beat the market recovery in 2009, and has outperformed in most periods since. The fund was closed to new investors in 2013 but 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 0.00%
  • 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.

Track record

Periods of worst performance

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Relative 0.00% ()

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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Sector breakdown

Industrials 26.00%
Technology 20.00%
Health Care 15.00%
Financials 12.00%
Consumer Goods 12.00%
Consumer Services 6.00%
Utilities 3.00%
Basic Materials 3.00%
Money Market 2.00%
Oil & Gas 1.00%

Portfolio

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

Key Investor Information - Income

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Key Investor Information - Accumulation

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