Threadneedle European Select Z

Fairly concentrated portfolio of mainly large-cap continental European equities.

  • 201.31p
    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.

  • 262.51p
    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).

  • 0.80%
    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.

  • 0.80%
    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 15 January 2021, fund data last updated 05 September 2019

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

Sector Europe Excluding UK
Structure OEIC
Launched October, 2012
Size £1,869m
Yield 0.80%
Charging basis Income
Dividends paid May

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.80%

Allocation

Proportion (%)

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

Allocation

Proportion (%)

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

Allocation

Proportion (%)

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

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 fund’s longstanding manager Dave Dudding stepped down at the end of 2020, but the initial results of his replacement Ben Moore suggest he could be an able replacement. Moore has worked on Threadneedle’s team since 2015 and as co-manager of this fund since 2019, a period of continued success for the strategy. Like Dudding he focuses on high-quality companies which tend to have relatively stable earnings and hence share prices. As a result the fund typically displays defensive characteristics, with lower volatility than the market and offering a degree of protection from falling markets.

Manager research

Average monthly relative returns

  • 16/17 0.00%
  • 17/18 0.00%
  • 18/19 0.00%
  • 19/20 0.00%
  • 20/21 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.

Benjamin Moore

Moore is a portfolio manager within the European equities team and has co-managed the European Select strategy since April 2019. He joined the team in 2015 as an equity analyst, responsible for researching small-cap European companies. In this role, he was also deputy manager of the Threadneedle European Smaller Companies strategy. He previously spent six years with Goldman Sachs, where he worked as an equity research analyst within the European mid cap team. Moore holds an MA in History of Art from Cambridge University and studied Music at the University of the Arts, Berlin. He also holds the Chartered Financial Analyst designation.

Track record

The track record of Benjamin Moore 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 0.00% ()
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

Proportion (%)

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

Allocation

Proportion (%)

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

Allocation

Proportion (%)

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

Top 10 holdings

Data accurate as at 31 May 2020

6.1% Nestle Sa
5% Sap Se
4.5% Worldline
4.4% Novo-Nordisk As
4.4% Lonza Group Ag
4.2% Brenntag Ag
4.1% Asml Holding Nv
4% Roche Hldg Ag
4% Koninklijke Philips Nv
3.6% L`Oreal
Source: Trustnet

Sector breakdown

Industrials 30.00%
Consumer Goods 19.00%
Health Care 16.00%
Technology 13.00%
Basic Materials 10.00%
Consumer Services 6.00%
Cash & Cash Equivalents 2.00%
Financials 1.00%
Telecommunications 1.00%

Portfolio

40-60 stocks. Expected tracking error (ex ante) 3% to 8% p.a. Max cash 5%.

Constraints

Stock positions within +/-5% of benchmark weight and unlikely to exceed 7%. There are no set country/sector maximum or minimum weights.

Key Investor Information - Income

Download

Key Investor Information - Accumulation

Download