BlackRock Continental European Income Fund Class D - Income (GBP)

Since Hall became the fund’s co-manager in February 2021, it’s performed better than the average fund in the IA Europe excluding UK sector.

Over the long run, the fund has delivered an attractive yield for investors, above the one produced by the market, though income is not guaranteed, and yields aren't a reliable indicator of future income. Please note the fund's charges can be taken from capital rather than income. This increases the yield but reduces the potential for capital growth.

The managers' more cautious approach than some others in the sector and the defensive nature of the fund mean we don't expect it to fall as much as others in periods of uncertainty, but we would expect it to lag when markets rise. This should lead to less volatile performance, though all investments fall as well as rise in value, so you could get back less than you invest.

The managers look for companies that can help them deliver a growing income, with the potential for long-term growth. They want to achieve this while experiencing less volatility than peers in the European sector, providing some resilience in tough markets.

They'll invest in companies they feel have a competitive advantage or brand that others struggle to replicate, strong balance sheets, and high-quality management teams. And to help achieve lower levels of volatility compared to other European funds, the team also consider how cash generative a business is, as well as how resilient they think it'll be in a market downturn.

The fund is split into three buckets - premium yield, compounding growth and unique opportunities. The managers tend to invest in larger, more established European businesses, but can also invest in some higher-risk small and medium-sized businesses as well.

- Premium yield companies offer an average yield (a measure of income) above the market. These must be run by high-quality management teams and be cash generative.

- Compounding growth companies are considered the more resilient investments. They’re expected to deliver a more stable level of growth and resilient income streams.

- Unique opportunities companies have lower yields but offer greater potential for capital and dividend growth. These are viewed as world-class companies, which have underappreciated or strong growth potential.

The fund can be quite concentrated, which means each investment could have a big impact on performance, and it lends some of its investments to others in exchange for a fee in a process known as stock lending. These factors can add risk.