Invesco European Equity (UK)

Large and mid-cap continental European fund run in an unconstrained fashion.

  • 833.04p
    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.

  • 1088.81p
    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!

  • 1.68%
    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).

  • 1.68%
    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.

  • 2.70%
    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 November 2020, fund data last updated 29 December 2016

The fund aims to achieve capital growth by investing primarily in the shares of companies in continental Europe. Fund manager Jeffrey Taylor focuses on large and mid-cap stocks and adopts a primarily bottom-up approach, though he also takes account of the economic environment in selected stocks. Stock selection is primarily valuation-led but Taylor also favours companies undergoing change – this can lead to the portfolio having a contrarian bias.

Fund summary

Sector Europe Excluding UK
Structure OEIC
Launched January, 1986
Size £1,383m
Yield 2.70%
Charging basis Income
Dividends paid 31 Dec

Charges

Standard initial charge 5.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 1.68%
Ongoing charges figure 1.68%

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Investment process

The investible universe is comprised primarily of continental European equities above €1bn in size. The investment process includes both bottom-up and top-down analysis, though the former is the main focus and is expected to be the largest contributor to alpha generation. Ideas are sourced by the manager and his colleagues, from company meetings and from external analysts and strategists. Key in idea generation is identifying change. This can be in the company’s strategy or management, in the market’s perception of the company, or at an industry or macro level – the latter will often give the portfolio a contrarian bent. In researching stocks, the manager places a strong emphasis on valuation and in terms of style his portfolios typically have a bias to value. He also looks at a company’s earnings outlook, structural changes in business or market, and cyclical changes which will impact the business.

Manager research

Average monthly relative returns

  • 15/16 0.15%
  • 16/17 -0.03%
  • 17/18 -0.05%
  • 18/19 -0.70%
  • 19/20 -1.24%

Bestinvest MRI

  • 3 years -0.66%
  • 5 years -0.37%
  • Career 0.01%
  • 3 years 4.80%
  • 5 years 10.90%
  • Career 92.40%

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

Jeffrey Taylor

Born in 1963, Taylor graduated in Modern Languages from Oxford University in 1985. His career began the same year with Williams De Broe where he was a European Equity Analyst. He moved to Dillon, Read Securities in 1987, spending ten years as Director of Belgian Equities. He joined Perpetual’s European Investment team in 1997 and worked alongside Margaret Roddan who was then the lead manager. He took over her role when she left the group in February 2001, then became head of the expanded European team in 2003 when it absorbed the London team.

Track record

Jeffrey Taylor has 19.8 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been +0.01%. During the worst period of relative performance (from December 2016 - October 2020) there was a decline of 25% relative to the index. The worst absolute loss has been 45%. Statistically, we estimate the probability that this fund manager is adding value, rather than being lucky, is 92%.

Periods of worst performance

Absolute -45.00% (January 2001 - September 2002)
Relative -25.00% (December 2016 - October 2020)

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 31 July 2020

4.95% Sanofi
4.75% Novartis Ag
3.3% Edp Energias Portugal
3.3% Saint-Gobain (Compagnie De)
3.26% Siemens Ag
3.15% Orange Sa
3.14% Deutsche Post Ag
3.13% Vestas Wind Systems
2.99% Carrefour
2.83% Deutsche Telekom Ag
Source: Trustnet

Sector breakdown

Financials 19.00%
Industrials 17.00%
Health Care 14.00%
Oil & Gas 11.00%
Telecommunications 9.00%
Consumer Services 8.00%
Utilities 6.00%
Technology 5.00%
Basic Materials 5.00%
Consumer Goods 4.00%

Portfolio

Around 50 stocks.

Constraints

Normally not more than 5% in any one stock. Normally not more than a 3% active position.

Key Investor Information - Income

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Key Investor Information - Accumulation

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