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A new fund from Chris Rice – Sanditon European

Sanditon European, run by Chris Rice, is an exciting option for those keen to venture further afield than the UK when choosing investments for ISAs and pensions. We have long presented the case for European equities, drawing attention to the quality of the continent’s companies, many of which have been established for decades, if not centuries, and operate on a global basis.

Lee Dooley Lee Dooley
06 March 2015

Chris Rice has lived and breathed European equities since the 1990s. Following many successful years at Cazenove, and before that HSBC, Chris Rice branched out on his own in 2013. He set up boutique investment management firm Sanditon with three other partners.

Chris Rice has continued to follow the business cycle approach that he honed while at Cazenove. This involves judging the state of the economy as it moves through the different stages of a business cycle – slowdown, recession, recovery and expansion – and then focusing on companies that he believes will benefit during a particular stage of the cycle. As an example, during a recession he is likely to focus on more defensive sectors such as pharmaceuticals rather than those such as electronics that are more susceptible to the ups and downs of the economy.

The fund is currently defensively positioned and holds 55 companies (as at January 2015), many of which will be familiar to most investors. Peugeot and Heineken are two such examples. In the top 10 you’ll also find Saint Gobain, which, at 350 years old, is one of the longest-established manufacturing companies in the world. Listed in France, it operates a vast number of brands globally including builders merchant Jewson here in the UK. Other companies include Italy’s Atlantia, which is responsible for 5,000 kilometres of toll motorways in countries as far flung as Poland, Brazil and India; and Dutch mobile and landline company KPN.

Victoria Chernykh, our European specialist who has recently given this fund a three-star rating, says: “While this is a new fund, at Tilney Bestinvest we follow the manager not the fund and we have conviction that Chris Rice is a highly competent manager with a very strong long-term track record. In our opinion, his experience, coupled with his consistently applied investment process, is second to none.”

 

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The value of investments, and the income derived, can go down as well as up, and you can get back less than you originally invested. Different funds carry varying levels of risk depending on the geographical region and industry sector in which they invest. You should make yourself aware of these specific risks prior to investing. This article does not constitute personal advice.