Wealth Shortlist Update: BlackRock European Dynamic

We believe the fund offers investors access to a high-quality, growth-focused fund investing in European companies, backed by one of the most experienced and well-resourced investment teams in the industry.

The fund is managed by Giles Rothbarth, who has been involved with the fund since 2015 before becoming lead manager in 2021. He’s supported by co-manager Alexandra Dangoor and BlackRock's wider European equities team.

Rothbarth has spent his career within this team and worked closely with highly regarded investor and previous manager Alister Hibbert before taking responsibility for the fund. This period of development, combined with the talent across the broader team, supports our conviction in the fund.

The fund benefits from significant research resources, a highly collaborative culture and BlackRock's extensive analytical and risk management capabilities. In our meetings with the team, we're struck by their intellectual curiosity, depth of analysis and a culture of constructive challenge that underpins investment decisions. We think these qualities, alongside BlackRock's resources, give the team a strong platform to identify opportunities and deliver long-term returns for investors.

The managers aim to invest in companies whose earnings growth potential isn't fully recognised by the market. While the fund has a growth bias, it has some flexibility. Rather than being confined to a narrow part of the market, the managers invest wherever they believe they can find the most attractive opportunities for earnings growth.

We view this flexibility as one of the fund's strengths as it allows the team to adapt as opportunities evolve, though it means it can also invest in more economically sensitive sectors, or some value-focused companies (those with share prices that look too low compared with their prospects). The fund invests in a relatively small number of companies – currently 42 – which means each one can have a meaningful impact on performance and increases risk.

Rothbarth has built a strong track record since his involvement in the fund. It’s grown 140.71%* since he became co-manager in 2019, outperforming the FTSE World Europe ex UK Index return of 116.79% and 105.55% for the average fund in the IA Europe ex UK sector. As with all funds, periods of weaker performance should be expected, including times when the growth investment style falls out of favour. That said, the fund’s flexibility means at times we expect it to hold up better than more narrowly focused growth peers.

Past performance isn't a guide to the future. Source: Lipper IM* to 31/07/2026.

The fund provides diversification alongside the Wealth Shortlist's existing European funds as it provides exposure to mainly larger European companies with a growth-focused approach.

Overall, we're impressed by the quality of the team, the depth of resources available to them and the disciplined but flexible way they invest. Combined with a strong long-term track record and a distinctive approach to finding opportunities across European markets, we believe the fund has the potential to deliver attractive returns for patient investors over the long term.