CT European Select Class Z - Income (GBP)

In recent years, quality growth investing has lagged value investing. This has impacted all funds using a quality growth approach, including CT European Select. As always, past performance isn’t a guide to future returns.

A focus on high-quality companies which offer sustainable returns and growth potential over the long run means the fund could perform well when growth investing is in favour, though the reverse is also true. This also has the potential to help the fund hold up better than some peers during difficult markets.

The managers look for quality companies. These are businesses with a sustainable competitive advantage, which could help them sustain long-term cash flows. They should possess a unique quality the managers think can help them maintain higher earnings than the rest of the market thinks they can. This might be because they make a product that others can't replicate, are better at keeping costs down, or have built strong relationships with their customers meaning they're less likely to switch to a competitor.

The managers look for high-quality companies they believe offer sustainable returns and strong growth potential over the long run. They prefer companies that are in industries with relatively few competitors and boast strong pricing power - the ability to pass on rising costs to consumers without denting demand too much.

A long-term investment focus is important to the team. They look at what's going on within individual companies, rather than trying to predict the impact of wider economic or political events, which may have little bearing on a company's longer-term success. They also invest in a relatively concentrated number of companies, meaning each investment could have a big impact on performance, which increases risk.