3 Biggest European Funds

Developed market equities came back with a vengeance last year as the market momentum from 2012 continued apace. Which are the biggest European funds?

Samuel Meakin 25 March, 2014 | 1:30PM
Facebook Twitter LinkedIn

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.

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.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BGF Continental Eurp Flex A4 EUR44.65 EUR-0.60Rating
Janus HndrsnContinen Eurp A2 EUR17.79 EUR-0.47Rating
JOHCM Continental European B GBP6.35 GBP-0.97Rating

About Author

Samuel Meakin  is a fund analyst for Morningstar

© Copyright 2024 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Modern Slavery Statement        Cookie Settings        Disclosures