The BGF Continental European Flexible fund is an unconstrained, relatively high-turnover portfolio of 35-65 stocks. The manager, Alister Hibbert, has been in charge since March 2008 and isn’t afraid to take large bets at both the stock and sector levels. He favours companies with strong franchises, run by quality management, and with earnings potential underestimated by the market. This fund is rated Silver by Morningstar OBSR; we believe the manager is well equipped to run this punchy strategy and he also benefits from the strong, experienced equity European team at BlackRock, as well as the firm’s sophisticated risk management tools.
We hold the Henderson Continental European fund in high regard. Highly experienced fund manager John Bennett has managed this fund since February 2010. The fund mainly invests in large- and giant-cap European stocks, but the manager can dip down the cap ladder when he finds attractive buying opportunities. He analyses macroeconomic and sector trends to provide insight into the prospects for and behaviour of European companies. He also seeks out contrarian trades as he is aware of the mean-reversion potential of stock markets. We think investors are in capable hands here and the fund holds a Morningstar OBSR Analyst Rating of Silver.
The JOHCM Continental European fund has provided investors with consistent returns through time. Paul Wild took over as the sole manager of the fund in April 2010, but he had been co-managing it alongside Rod Marsden since 2003. He takes top-down views on sectors that are informed by evaluation of economic developments and changes in industry earnings momentum. He then searches for stocks that fit these views across the European equity universe. The sound process, which has provided consistently strong performance, and the experienced manager make this an attractive offering. The fund is rated Silver by Morningstar OBSR.
