Threadneedle European Select Fund is the top-performing Europe fund over the last year, and is in the top five performers over three and five years. It aims for above-average growth via a concentrated portfolio of equities, and its select investment approach means fund manager Dave Dudding can take significant stock and sector positions. However, while this can boost returns it also risks increased volatility, so the fund is better for long-term investors who can tolerate large price fluctuations.
Risk is diversified via thematic exposure and the portfolio is monitored constantly by an independent risk team.
The investment process begins with a clear understanding of the macroeconomic and thematic background, although share selection concentrates on company attributes rather than sectoral or geographic considerations. The investment team attends around 300 company meetings a year to help understand how companies might develop over the medium term. Mr Dudding also assesses shares using valuation tools and financial analysis.
He targets quality companies with robust balance sheets and pricing power achieved through strong market positioning.
The fund's main sector exposure is industrials, at 24.1 per cent of assets, while the defensive area of healthcare accounts for nearly 15 per cent. The fund has virtually no exposure to the troubled economies of southern Europe, with nearly two-thirds of its assets in France, Switzerland and Germany.
Mr Dudding has run Threadneedle European Select since 2008 and also manages Threadneedle European Smaller Companies Fund. He joined Threadneedle in 1999 and earlier in his career was a journalist at Investors Chronicle.
THREADNEEDLE EUROPEAN SELECT Retail Net (GB0001529345) | |||
| PRICE: | 130.62p | SHARPE RATIO | 0.33* |
| IMA SECTOR: | Europe ex UK | TRACKING ERROR: | 10.3%* |
| FUND TYPE : | Open-ended investment company | 1-YEAR ANNUALISED PERFORMANCE: | -3.14% |
| FUND SIZE: | £829.6m* | 3-YEAR ANNUALISED PERFORMANCE: | 13.65% |
| NO OF HOLDINGS: | 43* | 5-YEAR ANNUALISED PERFORMANCE: | 3.56% |
| SET-UP DATE: | 31 October 1986 | TOTAL EXPENSE RATIO: | 1.69% |
| MANAGER START DATE: | July 2008* | YIELD: | 0.32% |
| TURNOVER: | 227%* | MINIMUM INVESTMENT: | £2,000 |
| VOLATILITY: | 20.25%* | MORE DETAILS: | threadneedle.co.uk |
Source: Morningstar & *Threadneedle
Performance data as at 10 October 2011
Top 10 holdings as at 31 August 2011
| Nestlé | 7.9 |
| Anheuser-Busch InBev | 5.7 |
| Scheider Electric | 5.7 |
| Air Liquide | 5.7 |
| Fresenius Medical Care | 5.2 |
| Swedish Match | 4.8 |
| Sampo | 4.5 |
| Novartis | 4.4 |
| Svenska Handelsbanken | 4.2 |
| Novo Nordisk | 2.3 |
| Geographic breakdown | Percentage |
| France | 23.0 |
| Switzerland | 21.7 |
| Germany | 17.5 |
| Sweden | 12.3 |
| Belgium | 7.0 |
| Finland | 6.5 |
| Norway | 3.3 |
| Denmark | 3.2 |
| Netherlands | 2.6 |
| Ireland | 1.4 |
| Other | 0.8 |
| Cash | 0.7 |
