Europe is often overlooked by UK investors. It is easy to forget that the European Union is made up of 27 countries and thousands of companies, some of which are global leaders in their fields and performing extremely well. The skill is finding them and for that you need a first rate stock picker. I can think of few better than Richard Pease.
To identify the best companies that Europe has to offer, Richard Pease focuses on understanding how and why a business makes money. Before he invests in any company he will meet with their management, assess their commitment to the business, their capabilities and business plan. When he is confident he understands the business inside out he will invest with a long-term view, but will adjust the size of his holding to take advantage of fluctuations in the share price.
By maintaining a close relationship with company management he is well positioned to identify signals to buy or sell. For example, he helped to shelter investors from some of the worst of the banking fallout in late 2008 by selling his investment in Anglo Irish Bank when management started to sell their own shares.
Richard Pease’s focus is on looking for profitable companies that have a competitive edge in a niche area. Currently his favourite stocks include Wolters Kluwer, which publishes technical books that are used by accountancy and law practices across the globe. They are a major player in this market and the recurring earnings generated by subscriptions, coupled with the resilient nature of their customers’ businesses, make the stock attractive.
Another example is Schindler, the world’s largest supplier of escalators and lifts. This company has benefited from strong demand fuelled by construction of modern buildings in China and India, for example the company is currently installing a 118 storey double deck lift system into what has recently become Hong Kong’s tallest building. Such projects provide servicing contracts that provide a source of reliable revenue into the future. This, coupled with a robust balance sheet, makes it one of Richard Pease’s favourite stocks.
Richard Pease has an excellent track record of managing smaller, nimble, funds where he can be more flexible in buying and selling shares. The launch of the New Star European Special Situations Fund therefore gives him an ideal platform to showcase his talents. It will invest in a concentrated portfolio of smaller companies. The fund will fall in value as well as rise, so investors should have a long term horizon in mind and ensure they are comfortable with the risks before investing. It is worth noting that this fund has an estimated income yield of 3.5% which can either be withdrawn or reinvested to enhance the growth potential (yields are variable and not guaranteed).
We have high hopes for this new launch and have no hesitation in adding it to the Wealth 150, our list of favourite funds in each sector. We are confident it will merit its position in years to come.
Mark Dampier
Head of Research
To identify the best companies that Europe has to offer, Richard Pease focuses on understanding how and why a business makes money. Before he invests in any company he will meet with their management, assess their commitment to the business, their capabilities and business plan. When he is confident he understands the business inside out he will invest with a long-term view, but will adjust the size of his holding to take advantage of fluctuations in the share price.
By maintaining a close relationship with company management he is well positioned to identify signals to buy or sell. For example, he helped to shelter investors from some of the worst of the banking fallout in late 2008 by selling his investment in Anglo Irish Bank when management started to sell their own shares.
Richard Pease’s focus is on looking for profitable companies that have a competitive edge in a niche area. Currently his favourite stocks include Wolters Kluwer, which publishes technical books that are used by accountancy and law practices across the globe. They are a major player in this market and the recurring earnings generated by subscriptions, coupled with the resilient nature of their customers’ businesses, make the stock attractive.
Another example is Schindler, the world’s largest supplier of escalators and lifts. This company has benefited from strong demand fuelled by construction of modern buildings in China and India, for example the company is currently installing a 118 storey double deck lift system into what has recently become Hong Kong’s tallest building. Such projects provide servicing contracts that provide a source of reliable revenue into the future. This, coupled with a robust balance sheet, makes it one of Richard Pease’s favourite stocks.
Richard Pease has an excellent track record of managing smaller, nimble, funds where he can be more flexible in buying and selling shares. The launch of the New Star European Special Situations Fund therefore gives him an ideal platform to showcase his talents. It will invest in a concentrated portfolio of smaller companies. The fund will fall in value as well as rise, so investors should have a long term horizon in mind and ensure they are comfortable with the risks before investing. It is worth noting that this fund has an estimated income yield of 3.5% which can either be withdrawn or reinvested to enhance the growth potential (yields are variable and not guaranteed).
We have high hopes for this new launch and have no hesitation in adding it to the Wealth 150, our list of favourite funds in each sector. We are confident it will merit its position in years to come.
Mark Dampier
Head of Research
