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 GBP Hgd

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

  • 209.20p
    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.

  • 220.30p
    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?

  • 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.

  • 0.00%
    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 20 January 2022, fund commentary last updated 19 January 2022

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

Sector Europe Excluding UK
Structure UNIT TRUST
Launched September, 2015
Size £6,486m
Yield 0.00%
Charging basis Income
Dividends paid 30 Apr

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.20%
Annual management charge 0.75%
Ongoing charges figure 0.92%

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

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 departure of longstanding manager Alister Hibbert from this fund at the end of 2020 could have been a cause for concern. However, his replacement Giles Rothbarth, who has worked with Hibbert on the fund since 2015, shares many of his qualities. We believe he has an encyclopaedic stock knowledge and is one of the top young fund managers in the City of London. Rothbarth benefits from the continued presence of Hibbert on BlackRock’s European team, which also includes the same analysts and managers who helped drive the fund’s past success. He builds the portfolio around a core of high-quality stocks he believes can provide growth over the long-term, but he will rotate the portfolio into different types of companies depending on his shorter-term view of the market. This flexible approach means that portfolio turnover can be high, but also gives the fund the potential to perform in different market conditions. This is one of the strongest options available to investors looking for exposure to continental European equities.

Manager research

Average monthly relative returns

  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%
  • 20/21 0.00%
  • 21/22 0.00%

Bestinvest MRI

  • 3 years 0.00%
  • 5 years 0.00%
  • Career 0.35%
  • 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.

Giles Rothbarth

Rothbarth graduated with an MA (Hons) degree in Philosophy, Politics & Economics from Oxford University in 2010. He joined BlackRock the same year and is now a CFA charterholder, Director and portfolio manager in 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.

Track record

The track record of 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 -5.00% (August 2021 - September 2021)
Relative -3.00% (December 2020 - March 2021)

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

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Top 10 holdings

Data accurate as at 30 November 2021

7.4291% Asml Holding Nv
5.9328% Lvmh Moet Hennessy Vuitton Se
5.8242% Lonza Group Ag
5.4991% Sika Ag
5.143% Dsv As
4.5905% Novo-Nordisk As
3.6366% Teleperformance
3.5091% Straumann Hldg
3.0328% Be Semiconductor Industries Nv
2.966% Pandora As
Source: Trustnet

Sector breakdown

Industrials 26.00%
Technology 22.00%
Health Care 18.00%
Consumer Discretionary 17.00%
Financials 7.00%
Money Market 4.00%
Basic Materials 3.00%
Energy 2.00%
Consumer Staples 2.00%

Portfolio

35-65 stocks.

Key Investor Information - Income

Download

Key Investor Information - Accumulation

Download