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Threadneedle European Select Z

Bestinvest LogoFairly concentrated portfolio of mainly large-cap continental European equities.

PRICE (INC)

177.63p

PRICE (ACC)

233.33p

INITIAL CHARGE

0%

ANNUAL MANAGEMENT CHARGE

0.75%

ONGOING CHARGE

0.8%

YIELD

0.4%

1 YEAR
-9.81%

Prices as at 01 Jul 2022.

We don’t currently provide commentary on this fund.

Past performance is not an indication of future performance.

Capital at risk.

The fund aims to achieve capital growth by investing in a relatively concentrated portfolio of continental European equities. The fund has a multi-cap approach, but the bulk of investments are in larger companies. Manager Benjamin Moore looks for high quality businesses, defined as those with strong competitive advantages such as barriers to entry, that can deliver sustained, above-average growth in their sales and profits. Once invested he typically holds these stocks for a long period, selling only when their investment case has materially changed.

Fund summary

SectorEurope Excluding UK
StructureOEIC
LaunchedSeptember 2013
Size£1,470m
Yield0.4%
Charging BasisIncome
Dividends paidMay

Charges

Standard Initial Charge0%
Initial Charge Via BestInvest0%
Additional Bid/Offer Spread0%
Annual Management Charge0.75%
Ongoing Charges Figure0.8%

Investment Process

The manager invests primarily in large and mid-cap continental European companies that operate globally. He looks for quality businesses which have competitive advantages and therefore high and sustainable long term returns, as he believes these are often mispriced by the market. He analyses competitive advantages through the Porter Five Forces framework, looking at factors such as barriers to entry and customer power to assess their business models. Stocks tend to enter the portfolio with high conviction. Risk control is one of the key elements of the process, with risk primarily controlled through the quality focus. The fund typically has high weightings in the consumer and pharmaceutical sectors, which have strong brands and patents respectively. By contrast, there are few holdings in the oil & gas, financials and utility sectors, where there is little pricing power. Ideas are generated by the European equity and broader teams, which work closely together. The process includes macro and thematic overlays, quantitative screens and company meetings. Despite the top-down elements, stock research is primarily bottom-up. Ideas are shared across the European team, but the manager's approach on this fund is longer-term and less valuation-sensitive than that of his colleagues.

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