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Threadneedle European Select Class Z - Income (GBP)

Sell:237.24p Buy:237.24p Change: 1.95p (0.83%)
Prices as at 23 September 2021
Change: 1.95p (0.83%)
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
Prices as at 23 September 2021
Change: 1.95p (0.83%)
Prices as at 23 September 2021
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account
The selling price currently displayed is higher than the buying price. This can occur temporarily for a variety of reasons; shortly before the market opens, after the market closes or because of extraordinary price volatility during the trading day.

Our view on this Fund

This fund is on the Wealth Shortlist of funds our analysts believe have the potential to outperform their peers over the long term. However, this is not a recommendation to buy.

We view this fund as a good all-round choice in the European sector. It could sit alongside other European funds using different investment styles, or form part of a broader global investment portfolio focused on long-term growth.

The fund is run by lead manager Benjamin Moore and deputy managers David Dudding and Roberta Zeno. All three managers have experience investing in European companies, and we think they follow a robust investment process. We view the fund as a more conservative way to invest in Europe, with an overriding focus on quality companies with the potential for growing profits steadily year on year.

Our view on the sector

Europe has been blighted by political issues in recent years. And some European economies are struggling with high levels of debt and unemployment. But it's important to disconnect a region's economic prospects from its stock market prospects. Europe is home to lots of successful businesses that make money across the globe - from the US to high-growth areas like Asia and emerging markets. That means their prospects aren't heavily reliant on Europe's economy. Some investors have overlooked the region in recent years. But we think Europe is a great place to invest for the long term and there are plenty of high quality fund managers to choose from.

Performance Analysis

Dudding has a long history of outperforming the European stock market. Our analysis suggests this performance is mainly down to the manager's stock-picking, his ability to identify stocks that go on to perform well, regardless what size they are or in which country their based. Being in the right sectors at the right time has also helped. Past performance is not a guide to future returns.

Moore has a shorter track record, though the results look promising since he became co-manager in April 2019, and while he previously worked in Threadneedle's European smaller companies team.

The managers' more conservative approach and focus on companies that could deliver more sustainable returns has seen the fund perform well in a variety of market conditions. It's held up better than the average European fund in weaker markets, though it has not tended to rise as quickly in positive markets. It has also tended to be one of the least volatile funds in the European sector, but there are no guarantees the fund will perform this way in future. All investments fall as well as rise in value, so you could get back less than you invest.

Investment Philosophy

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.

Process and Portfolio Construction

The managers focus on what's going on within individual companies, rather than trying to predict the impact of wider economic or political events that may have little bearing on a company's longer-term success. They also tend to focus on larger firms, which could bring some more stability to the fund than some other European funds. The fund mainly invests in larger or more stable European economies, such as Switzerland, France, Germany and the Netherlands.

The managers are supported by a well-resourced European equities team at Threadneedle. This group of analysts act as an important source of ideas for the managers, and helps to encourage challenge and debate in the team.

Overall the fund invests in a fairly small number of companies and this means each one could have a big impact on performance, though this approach increases risk.

question mark Manager Track Record Based on HL Quantitative Research

  • Threadneedle European Smaller...
  • Threadneedle European Select Ret...
  • IA European Smaller Companies
  • IA Europe (Excluding UK)

Fund Track Record

23/09/16 to 23/09/17 23/09/17 to 23/09/18 23/09/18 to 23/09/19 23/09/19 to 23/09/20 23/09/20 to 23/09/21
Annual return 15.30% 5.70% 6.96% 14.20% 22.74%

Please remember past performance is not a guide to future returns. Where no data is shown, figures are not available. This information is provided to help you choose your own investments, remember they can fall as well as rise in value so you may not get back the original amount invested.

Fund Management Group Comment

Threadneedle was founded in 1994, created out of the investment operations of Allied Dunbar and Eagle Star. Its origins are in the UK insurance industry, but 1997 saw the launch of UK OEIC funds. Threadneedle is fully owned by Ameriprise Financial, which is listed on the NYSE. In 2008 Threadneedle entered the Asian market, with its first office opened in Hong Kong. Threadneedle continues to grow and expand into Asia, North America, Australia and the Middle East.

The ethos of Threadneedle is built upon teamwork as a means to deliver superior, repeatable outperformance. The investment process is based on working together to generate ideas and to test them; gaining insight from different asset classes and geographies to ensure a robust grounding, while allowing individual teams to use their skill and flair.

Information about the fund

Fund manager biography

manager photo
Manager Name: Benjamin Moore
Manager start date: 1 April 2019
Manager located in: London

Benjamin Moore is a portfolio manager within the European equities team and he has co-managed the Threadneedle European Select strategy since April 2019. Benjamin joined the European equities team in 2015 as an equity analyst, where he was responsible for researching small cap European companies. In this role, he was also deputy portfolio manager of the Threadneedle European Smaller Companies strategy. Before joining the company, Benjamin spent six years with Goldman Sachs, where he worked as an equity research analyst within the European mid cap team covering companies across a range of industry sectors. Benjamin holds an MA in History of Art from Cambridge University and studied Music at the University of the Arts, Berlin. He also holds the Chartered Financial Analyst designation.

Data policy - All information should be used for indicative purposes only. You should independently check data before making any investment decision. HL cannot guarantee that the data is accurate or complete, and accepts no responsibility for how it may be used. Benchmark data provided subject to this disclaimer.
You can buy or sell holdings in this fund through a Stocks and Shares ISA, Lifetime ISA, SIPP or Fund and Share Account