3 Silver Rated European Equity Funds

With quantitative easing helping to put the European economic recovery back on track, consider these three highly rated funds for exposure to the eurozone

Jeremy Beckwith 19 May, 2015 | 11:00AM
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This week Morningstar.co.uk is bringing you simple solutions from the experts about where you should put your money and why.

 

 

 

 

Jeremy Beckwith: There are three European equity funds, all of which are large cap, all of which are very actively managed, all of which are silver-rated by Morningstar. First is Neptune European Opportunities, the second is Henderson European Focus and the third is BlackRock European Dynamic.

All three managers we like very much, but they all have very different looking portfolios at the current time, and so investors can pick and choose which are the good managers depending on the portfolio they wanted to invest in.

So, if we look at the BlackRock European Dynamic portfolio, it's very heavily weighted towards defensive, healthcare and consumer staples names and has a very high return on equity of the underlying portfolio, about 23%.

John Bennett's Henderson European Focus Fund is much more closely related to the index apart from a very heavy weighting towards healthcare stocks. But his overall return on equity is about 15% in line with the market average.

And the Neptune European Opportunities Fund is a very different looking portfolio, very overweight in Italy, very overweight in for natural services stocks, and there, the return on equity of the portfolio is only about 4%, so he is really looking for sort of value type stocks and the rebound and what's going on in Europe.

So, very different structure of the portfolios, but all run by very good managers and ones that Morningstar rates all as silver.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BlackRock European Dynamic A Acc982.52 GBP0.98Rating
Janus Henderson European Focus A Acc440.92 GBP0.74Rating

About Author

Jeremy Beckwith  is Director of Manager Research for Morningstar UK

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