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Tailored for investment professionals this site provides information on our products, strategies and services. Please remember capital is at risk and past performance is not a guide to the future.

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Investec European Equity Fund

The Fund aims to provide an attractive level of growth by investing in European companies or companies which carry out a large proportion of their business activities in Europe.

Fund highlights

 

Why choose the Investec European Equity Fund?

  • Aims to invest in high-quality European companies with attractive valuations.
  • High conviction risk-aware portfolio of up to 70 European stocks^.
  • Employs our rigorous and consistent 4FactorTM bottom-up investment process.
  • Provides an adaptable portfolio which is style, size and benchmark agnostic.
  • 86% active share and 33% currently invested in small to medium-size companies (as at 31.12.17).
  • Track record of high level outperformance.
  • Portfolio Currency Hedged share classes available, which hedge all non-US
    dollar currency exposure into US dollars.

 

Our excellent track record in managing European equities†



1 year  3 years p.a. 5 years p.a. 10 years p.a. Since inception p.a.**
Investec GSF European Equity A Acc 31.6% 10.6% 12.7% 3.5% 4.7%
MSCI Europe NR***
25.5% 6.7% 7.4% 0.7% 2.1%
Relative performance
6.1% 3.9% 5.3% 2.8% 2.7%


Calendar (and Index***) year returns: 2017: 31.6% (25.5%); 2016: -0.8% (-0.4%); 2015: 3.6% (-2.8%); 2014: -1.4% (-6.2%); 2013: 36.2% (25.2%).

Source: Morningstar, dates to 31.12.17. *The investment objective of the Fund was amended in November 2012 to include the UK. **Investec’s 4FactorTM team started managing the Fund from 28.12.06, which is the date used for performance purposes as above, prior to this date the Fund was managed by a third party. Calendar year performance source: Morningstar, 5 years ending December 2017. †Performance is net of fees (A Acc Share class, NAV based, including ongoing charges, excluding initial charges), gross income reinvested, in USD. ***MSCI Europe NR (MSCI Eur ex UK NR pre 30.11.12).

 

Why Europe? Why now?

  • Europe is home to many established world leading companies: – Investing in Europe means investing in companies and not countries.
  • Company balance sheets have strengthened, creating opportunities to add value.
  • European share prices are at historic lows versus the US, leaving scope for improvement.
  • European equities continue to have mid-range valuation multiples versus history.
  • Regarding Brexit, while we believe the main issues are largely political, some sectors will experience headwinds. However, other sectors stand to benefit from more benign conditions e.g. weaker sterling.
  • More significantly, we believe economic conditions in Europe have improved and there is considerable scope for corporate profit margins to grow with a continued economic recovery.

Why Investec Asset Management for European equities?

  • Experienced portfolio manager, Ken Hsia, has a demonstrable track record in investing in Europe and the UK. 
  • Managed within the 4FactorTM Equity team which runs US$59.0 billion of assets and has developed a strong track record in global and regional equity funds.^^ 
  • The team has an average of 15 years’ experience.

 

 

General risks

The value of investments, and any income generated from them, can fall as well as rise. Where charges are taken from capital, this may constrain future growth.

Past performance is not a reliable indicator of future results. If any currency differs from the investor's home currency, returns may increase or decrease as a result of currency fluctuations.

Investment objectives and performance targets may not necessarily be achieved, losses may be made.


Specific risks

Geographic/Sector: Investments may be primarily concentrated in specific countries, geographical regions and/or industry sectors. This may mean that the resulting value may decrease whilst portfolios more broadly invested might grow. Currency exchange: Changes in the relative values of different currencies may adversely affect the value of investments and any related income. Equity investment: The value of equities (e.g. shares) and equity-related investments may vary according to company profits and future prospects as well as more general market factors. In the event of a company default (e.g. bankruptcy), the owners of their equity rank last in terms of any financial payment from that company.

Ken Hsia

Portfolio Manager,
European Equity

Important information

All information is as at 31.12.17 unless otherwise stated.

^Internal parameters subject to change without prior notice.
^^The assets under management (‘AUM’) figure for the 4FactorTM team stated above is calculated on an investment basis i.e. the assets that are managed across the 4FactorTM range of strategies, which now includes the SA Equity & Multi-Asset strategies. Where investment strategies have underlying holdings in other Investec funds or investment strategies the same pool of assets may appear under more than one investment strategy.

Fund ratings may be provided by independent rating agencies based on a range of investment criteria, and do not constitute investment advice by Investec Asset Management. For a full description of the ratings please see www.investecassetmanagement.com/ratings.

Indices are shown for illustrative purposes only, are unmanaged and do not take into account market conditions or the costs associated with investing. Further, the manager’s strategy may deploy investment techniques and instruments not used to generate Index performance. For this reason, the performance of the manager and the Indices are not directly comparable.

If applicable MSCI data is sourced from MSCI Inc. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, endorsed, reviewed or produced by MSCI. None of the MSCI data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such.

Some of the funds displayed on this page may not be registered in your region and will therefore not be available for sale . Please visit www.investecassetmanagement.com/registrations to check registration by country.