Our top-rated European investment funds
Here is a collection of our research team’s top-rated investment funds from Europe. These aren’t necessarily the best performing funds from the sector, but they are those that we believe are the most likely to deliver for investors over the long term.
Published on 09 Feb 20184 minute read
Europe – our view
Europe is home to some of the world’s top businesses. Belgium’s Anheuser-Busch InBev is the world’s largest brewer with brands including Budweiser and Stella Artois, whilst Spain’s Inditex dominates high streets globally with its Zara chain. But low growth, austerity and the bailout of Greece dominated headlines recently, highlighting Europe problems.
Yet signs of recovery have been on the horizon and in 2017 the strength of recovery became undeniable with unemployment dropping and Europe’s growth rate surging. Company profits recovered too since earnings from European businesses are sharply up. The only downside is that valuations are now not as cheap as they once were, but European equities still remain an attractive investment.
CRUX European Special Situations
Manager Richard Pease formed boutique CRUX in 2015. He previously worked at Jupiter (1990s), New Star (2000s) and then Janus Henderson from 2009, delivering strong results with each. Unusually he was able to bring this fund with him when he left Janus Henderson, giving his new company a kickstart. Pease looks for companies able to weather economic cycles and sustain high returns over time, but that are still at attractive valuations.
- Exposure to European companies across market cap range
- Manager has a near 30-year record of success
- Boutique investment company with a stable team
BlackRock Continental European Income
This fund was launched in 2011 and is run by Andreas Zoellinger and Alice Gaskell from BlackRock’s London office – two company veterans. They have worked together since 2001 and managed funds together since 2007. As well as a high yield they target dividend growth and long-term outperformance, and since launch have delivered all three. This fund stands comparison with the best funds, both income and growth, in the whole European sector.
- High yield as well as attractive total returns
- Offers diversity for UK-focused income portfolios
- Extensive resources of BlackRock European team
Baring Europe Select
Fund manager Nick Williams has specialised in European small-caps for over 20 years, and takes several steps to reduce the risk that comes with the sector. He favours high-quality companies, which he is confident can sustain growth rates over a number of years, and diversifies across a large number of these to reduce risk. He also allocates larger positions to sturdier mid-sized companies in the small and mid-cap universe.
- Experienced European smaller companies manager
- Portfolio diversification and exposure to mid-sized companies helps mitigate investment risk
- Disciplined and established investment process
This fund might seem high risk, but fund manager Alexander Darwall has created a defensive performance profile which provides a degree of protection from falling markets. He has done this by carefully studying business models, to look for patterns of success over long periods of time, and visiting companies in person rather than relying on analysts. He looks for long-term trends in the global economy and companies that will benefit from them. He also avoids higher-risk industries like banks and mining.
- A high-conviction, unconstrained portfolio
- Very strong long-term manager track record since the fund’s launch in 2001
- Risk reduced through single company uncorrelated risk
Buy these funds in our ISA
All of our top-rated funds can be bought in our award-winning ISA – a simple account for making tax-free savings and investments. It is quick and easy to open an ISA with us and use this year’s £20,000 allowance.
Find out more
The rest of our research team’s top fund picks from across the globe are available when you download the new edition of Our Top-rated Funds.
Speak to us
For more information on our Stocks & Shares ISA or our research team’s top-rated funds, get in touch by calling us on 020 7189 2400 or emailing firstname.lastname@example.org.
The value of investments, and the income derived from them, can go down as well as up and you can get back less than you originally invested.
We aim to provide investors with information to help them make their own investment decisions although this should not be construed as advice or an investment recommendation. If you are unsure about the suitability of an investment or if you need advice on your specific requirements, we strongly suggest that you consider professional financial advice. Due to their nature, specialist funds can be subject to specific sector risks. Investors should ensure they read all relevant information in order to understand the nature of such investments and the specific risks involved.
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. Smaller companies shares can be more volatile and less liquid than larger company shares, so smaller companies funds can carry more risk.