Bestinvest Logo
Why us
Planning ahead
Insights
fund

TM CRUX European Special Situations I GBP

Bestinvest LogoMulti-cap continental European equity fund run by Richard Pease at boutique CRUX.

PRICE (INC)

210.73p

PRICE (ACC)

283.05p

INITIAL CHARGE

0%

ANNUAL MANAGEMENT CHARGE

0.75%

ONGOING CHARGE

0.88%

YIELD

1.9%

1 YEAR
-6.10%

Prices as at 01 Jul 2022.

Fund commentary last updated 01 Dec 2021.

Past performance is not an indication of future performance.

Capital at risk.

The fund aims to achieve long-term capital growth by investing in the shares of European (ex-UK) companies. Managers Richard Pease and James Milne, of the London-based boutique Crux, look for large, medium, and small-sized companies which they believe are undervalued by the market. They use a bottom-up and GARP (Growth At a Reasonable Price) investment process to target companies with certain characteristics, including a high barrier to entry and managers who have invested their own cash into the business. Their holdings include French energy management firm Schneider and Swiss flavours and fragrances manufacturer Givaudan.

Fund summary

SectorEurope Excluding UK
StructureOEIC
LaunchedJune 2015
Size£707m
Yield1.9%
Charging BasisCapital
Dividends paid31 May, 30 Nov

Charges

Standard Initial Charge0%
Initial Charge Via BestInvest0%
Additional Bid/Offer Spread0%
Annual Management Charge0.75%
Ongoing Charges Figure0.88%

Investment Process

The fund has an investable universe of 3,000 continental European companies. Ideas are sourced from quantitative screens, around 350 company meetings a year, company/industry/analyst reports, and peer/customer reviews. The team focuses on four key criteria in its stock selection. They look for companies that are not highly capital intensive but generate good cash flow that is either invested in the business, put to work in mergers and acquisitions or returned to shareholders with higher dividend yields than usual. The team seeks companies with high barriers to entry and strong pricing power, enabling them to produce robust earnings with good growth potential. Pease likes firms with defendable global niches, companies that can expand by buying up small private rivals and he has a favourable view on family ownership. In addition, the team looks for businesses whose management have proven track records as well as meaningful stakes in the companies they run. Pease has no interest in “career jockeys” just there for the ride. Finally, they target companies that have relatively conservative valuations versus their competitors because if values are high then it is much harder to exceed expectations. Pease also shuns commodity-related business, most banks, those with regulatory risks such as telcos and utilities and firms which spend a lot of cash such as big oil groups. The process is almost entirely bottom-up with little consideration of economic factors. Pease believes it’s getting the company right that is important.

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