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Threadneedle European Select Class Z - Income (GBP)

Sell:195.85p Buy:195.85p Change: 0.72p (0.37%)
Prices as at 19 October 2020
Change: 0.72p (0.37%)
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 19 October 2020
Change: 0.72p (0.37%)
Prices as at 19 October 2020
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 more conservative way to invest in Europe, and think it's a good all-round choice for exposure to this sector.

It's run by David Dudding, who's shown he's got plenty of skill and experience of investing in European companies. He looks for companies he thinks can grow at a steady pace year after year, so a focus on those with growing earnings and profits is central to his process. He's shown he's a great stock picker, which is why this fund is one of our favourites.

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

David Dudding initially ran a fund focused on European smaller companies. In 2008 he took over the European Select fund, which mainly invests in larger companies. Over this time he's delivered impressive performance.

Our analysis suggests he's done a good job of investing in companies that have gone on to perform well, no matter what size they are or country they're based in. The manager's more conservative approach means the fund's held up better than other funds when markets have fallen, though it's tended to lag slightly when markets rise quickly. This isn't a guide to future performance though.

Investment Philosophy

The manager looks for companies he thinks will perform well, regardless of what's going on in the wider economy or with politics. Companies that own well-known brands, and have customers that keep buying their products and services even if prices rise, could do well in all types of market conditions, for example.

Process and Portfolio Construction

David Dudding analyses the qualities of individual companies and thinks about how they'll perform, rather than thinking about economic events that he doesn't think will have much impact over the long term. He also has the support of other analysts and experienced portfolio managers. We think Threadneedle is home to a strong European equity team.

He invests in a fairly small number of companies and this means each one could have a big impact on performance, which increases risk. Most of the fund invests in larger firms, but there's also some medium-sized companies in there too, which could help boost long-term growth.

question mark Manager Track Record Based on HL Quantitative Research

  • Threadneedle European Smaller...
  • Threadneedle European Select Ret...
  • IA European Smaller Companies
  • FTSE World Europe ex UK TR GBP

Fund Track Record

19/10/15 to 19/10/16 19/10/16 to 19/10/17 19/10/17 to 19/10/18 19/10/18 to 19/10/19 19/10/19 to 19/10/20
Annual return 19.96% 17.32% -7.86% 15.32% 19.73%

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.

manager photo
Manager Name: Dave Dudding
Manager start date: 1 July 2008
Manager located in: London

David Dudding joined the company as an equity research analyst in 1999 and is currently a portfolio manager within the European equities team. He manages the Threadneedle European Select Fund and the Threadneedle (Lux) Global Focus fund. David previously worked for John Swire and Sons in Hong Kong and for Investors Chronicle as a financial journalist.He holds a Modern History degree and a European Politics Masters degree from Oxford University. He also holds the Chartered Financial Analyst designation and is a member of the CFA Society of the UK.

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