Fact sheet: BlackRock Continental European Income

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
EUROPEAN EQUITIES
Sector
UT Europe Excluding UK
Fund type
Unit Trust
Primary aim
GROWTH & INCOME
Why Money Observer Rates BlackRock Continental European Income

Rated Fund 2015-2017. Emphasis on quality pays off

Set up in 2011, this is one of the few European funds with an income objective, as well as targeting capital growth. Its yield is over 4 per cent and it pays income quarterly.

It has been managed since inception by Andreas Zoellinger and Alice Gaskell. Apart from providing a regular, secure income for investors, the fund's other objective is to be less volatile than the average fund.

The managers' bias when selecting stock is therefore towards solid companies with good free cash-flow yields, earnings stability, solid balance sheets, differentiated business models and excellent corporate governance, which they believe will provide reliable returns.

They point out that they are not aiming for short-term outperformance, and that the fund has very little exposure to sectors of the market where dividend visibility is limited or which are overly volatile.

They caution that this means the fund is unlikely to outperform in sharply rising markets where those markets are led up by growth stocks with dividend risk. But they believe their emphasis on quality has enabled the fund to show resilience during falling markets.

They point out that unlike other investment markets where there is a reliance on increasingly expensive bond-like stocks to deliver income, they have a lot more choice in Europe in order to achieve their goals.

They believe their flexible approach across the economic cycle enables them to avoid risky or over-valued sectors. Their pragmatic style and awareness of general economic developments when constructing their portfolio, which typically consists of 40 to 50 stocks, appears to pay off.

3 Year Performance
Fund Performance36.8%
Average of Rated Funds Group64.4%
Sector Performance40.1%
Fund information
Fund name
BlackRock Continental European Income D Acc
Fund manager company
BlackRock
Fund type
Unit Trust
Fund managers
  • Alice Gaskellsince 05/05/2011
  • Andreas Zoellingersince 05/05/2011
Accolades
Fund objective
The aim of the BlackRock Continental European Income Fund (the “Fund”) is to achieve an above average income from its equity investments, compared to the income yield of European equity markets (excluding the UK), without sacrificing long-term capital growth. The Fund will invest primarily in the equity securities of companies domiciled in, or exercising the predominant part of their economic activity in Europe excluding the UK. The Fund may also invest in other transferable securities, permitted money-market instruments, permitted deposits, cash and near cash and units in collective investment schemes. Derivatives may be used for the purposes of efficient portfolio management.
Benchmark
  • FTSE All-World Developed Europe (ex UK) Index
Investment style
None
Investment method
Shares
Quick stats
1 Year return
10.7%
1 Year rank in sector
78/97
Sector
UT Europe Excluding UK
Yield
4%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
0.92%
Fund size
£1,922m (£1,445m last year)
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
96
Bid price
203.8
Offer price
204.2
Top in this sector
Fund name1 Year
Jupiter European25.3%
LF Miton Eu Opp24.9%
Baring European Growth21.6%
FP Argnt Eurpn Inc Opps21.1%
F&C European Growth & Income21.1%
...more in UT Europe Excluding UK

Performance snapshot

Holdings snapshot

  • Germany20.9%
    France16.5%
    Spain10.3%
    Italy10.3%
    Netherlands8.8%
  • Industrials25.8%
    Financials25.5%
    Health Care11.3%
    Consumer Goods11.1%
    Utilities9.1%
  • German Equities20.9%
    French Equities16.5%
    Spanish Equities10.3%
    Italian Equities10.3%
    Dutch Equities8.8%

Fund also available on these pension platforms:

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund-5.6%-4.2%-4.4%10.7%36.8%74.9%
Sector-4.4%-1%-1.2%13.1%40.1%68.8%
Rank within sector99 / 104101 / 10296 / 10078 / 9756 / 8724 / 80
Quartile4th4th4th4th3rd2nd
Calendar performance
 YTD - 20182017201620152014
Fund-3.8%17.3%12.8%13.6%4.4%
Sector-1.5%17.2%16.4%9.1%-0.7%
Rank within sector102 / 10442 / 9777 / 9316 / 879 / 84
Quartile4th2nd4th1st1st
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
0.2
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
0.91
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
0.88
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
9.93
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
4.05
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
-0.23
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.84
Price movement
52 week high217.2
52 week low181.3
Current bid price203.8
Current offer price204.2
Current mid price-
Region
1Germany20.86%
2France16.54%
3Spain10.32%
4Italy10.29%
5Netherlands8.81%
6Switzerland7.57%
7Sweden6.52%
8Denmark5.18%
9UK4.15%
Industry sector
1Industrials25.77%
2Financials25.46%
3Health Care11.34%
4Consumer Goods11.1%
5Utilities9.1%
6Telecommunications5.69%
7Consumer Services4.04%
8Money Market4.04%
9Technology2.01%
Asset type
1German Equities20.86%
2French Equities16.54%
3Spanish Equities10.32%
4Italian Equities10.29%
5Dutch Equities8.81%
6Swiss Equities7.57%
7Swedish Equities6.52%
8Danish Equities5.18%
9UK Equities4.15%
Individual holdings
1ALLIANZ SE4.27%
2ZURICH INSURANCE GROUP LTD4.22%
3BRITISH AMERICAN TOBACCO4.15%
4UNILEVER NV4.13%
5TELEFONICA SA4.09%
6ATLANTIA SPA3.95%
7SANOFI3.93%
8ENGIE SA3.91%
9DEUTSCHE POST AG3.82%
Management
Fund manager group
BlackRock
Fund manager company
BlackRock
Fund type
Unit Trust
Fund objective
The aim of the BlackRock Continental European Income Fund (the “Fund”) is to achieve an above average income from its equity investments, compared to the income yield of European equity markets (excluding the UK), without sacrificing long-term capital growth. The Fund will invest primarily in the equity securities of companies domiciled in, or exercising the predominant part of their economic activity in Europe excluding the UK. The Fund may also invest in other transferable securities, permitted money-market instruments, permitted deposits, cash and near cash and units in collective investment schemes. Derivatives may be used for the purposes of efficient portfolio management.
Benchmark
  • FTSE All-World Developed Europe (ex UK) Index
Investment style
None
Investment method
Shares
Fund managers
NameSinceBiography
Alice Gaskell05/05/2011Alice Gaskell is the Managing Director and Portfolio Manager, is a member of BlackRock’s European Equity Style Diversified Team.Alice Gaskell joined BlackRock following the merger with Merrill Lynch Investment Managers (MLIM) in 2006. At MLIM, she was responsible for managing the MLIT Continental Europe Fund, the MLIIF Euro Markets Fund and a number of segregated Europe ex UK and Eurozone mandates. Ms. Gaskell began her career with MLIM in 1994, and has managed European equity portfolios for institutional and retail clients since 1999.She earned a BA degree in Politics and Philosophy from Oxford University and is a member of the CFA Institute and an Associate of the UK Society of Investment Professionals (ASIP).
Andreas Zoellinger05/05/2011Andreas Zoellinger, CFA, is the Director and assistant Portfolio Manager, is a member of BlackRock's European Equity Style Diversified Team. Andreas Zoellinger joined BlackRock following the merger with Merrill Lynch Investment Managers (MLIM) in 2006. Prior to joining MLIM in 2001 as an analyst with the European equity team, he was a trainee with a major German bank. Mr. Zoellinger earned a Diplom-Kaufmann degree in Business Administration from the University of Munich & the University of Edinburgh.
Compliance
IA Recognised, UCITS IV Compliant
Domicile
No data available.
Fund for sale in
United Kingdom
BlackRock Continental European Income A Acc
Initial charge5%
Annual charge1.5%
Min single investment£500
Min regular saving£100
Available in ISAYes
Ongoing charge (OCF)1.67%
Total expense ratio (TER)1.83%
Bid price193.6
Offer price203.7
Mid price-
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeNOU2
BlackRock Continental European Income A Hedged Acc
Initial charge5%
Annual charge1.5%
Min single investment£500
Min regular saving£100
Available in ISANo
Ongoing charge (OCF)1.67%
Total expense ratio (TER)-
Bid price114.2
Offer price120.2
Mid price-
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeMDSP
BlackRock Continental European Income A Hedged Inc
Initial charge5%
Annual charge1.5%
Min single investment£500
Min regular saving£100
Available in ISANo
Ongoing charge (OCF)1.67%
Total expense ratio (TER)-
Bid price105
Offer price110.6
Mid price-
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeMDSQ
BlackRock Continental European Income A Inc
Initial charge5%
Annual charge1.5%
Min single investment£500
Min regular saving£100
Available in ISAYes
Ongoing charge (OCF)1.67%
Total expense ratio (TER)1.83%
Bid price147.1
Offer price154.8
Mid price-
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeNOU1
BlackRock Continental European Income D Acc
Initial charge-
Annual charge0.75%
Min single investment£100,000
Min regular saving£100
Available in ISAYes
Ongoing charge (OCF)0.92%
Total expense ratio (TER)1.1%
Bid price203.8
Offer price204.2
Mid price-
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeNOU4
BlackRock Continental European Income D Hedged Acc
Initial charge-
Annual charge0.75%
Min single investment£100,000
Min regular saving£100
Available in ISANo
Ongoing charge (OCF)0.92%
Total expense ratio (TER)-
Bid price112.8
Offer price113.1
Mid price-
CurrencyGBX
Price updated15/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeMDSR
BlackRock Continental European Income D Hedged Inc
Initial charge-
Annual charge0.75%
Min single investment£100,000
Min regular saving£100
Available in ISANo
Ongoing charge (OCF)0.92%
Total expense ratio (TER)-
Bid price106.8
Offer price107
Mid price-
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi codeMDSS
BlackRock Continental European Income D Inc
Initial charge-
Annual charge0.75%
Min single investment£100,000
Min regular saving£100
Available in ISAYes
Ongoing charge (OCF)0.92%
Total expense ratio (TER)1.1%
Bid price154.5
Offer price154.8
Mid price-
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeNOU3
BlackRock Continental European Income X Acc
Initial charge-
Annual charge-
Min single investment£10,000,000
Min regular saving£100
Available in ISANo
Ongoing charge (OCF)0.02%
Total expense ratio (TER)-
Bid price132
Offer price132.2
Mid price-
CurrencyGBP
Price updated15/02/2018
TypeAccumulation
Institutional or retail classInstitutional
Domicile-
Citi codeE2LX
BlackRock Continental European Income X Inc
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)0.02%
Total expense ratio (TER)-
Bid price95.62
Offer price95.82
Mid price-
CurrencyGBX
Price updated15/02/2018
TypeIncome
Institutional or retail classInstitutional
Domicile-
Citi codeOQAZ
Data provided by

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