The Share Centre - Fund fact sheet

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Man GLG Continental European Growth Prof C Fund Acc

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Fund objective

The objective of the Fund is to achieve above average long - term capital growth through investing, directly or indirectly, in the quoted securities of companies listed on European Stock Exchanges.

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Please make sure you read, and keep a copy of the Key Investor Information Document for this fund. If you do not understand any point please contact our Customer Service team on 01296 41 41 41.

Our Advice team´s view

Europe

While company balance sheets in the Eurozone remain strong, policy reform action remains painfully slow and the reforms that are coming through are being met with strong resistance, the labour reforms in France being the most recent example.

The European Central Bank's policy to increase the amount of money available in the Eurozone is causing its currency to weaken against the dollar, which is likely to be favourable to European exporters. However, economist are becoming increasingly worried that the European Central Bank's bazooka of policy measures announced in March may not be enough to stimulate growth in the bloc and now have the added burden of borrowing cost potentially rising due to the rout in the asset class since the election of Trump in the US. Moreover, while low oil prices and a less austere fiscal position continue to act as tailwinds to consumption, political risks are rising over Brexit, the potential rise of more populist leaders taking centre stage in Europe in 2017 and the referendum in Italy at the end of 2016.

Fund positioning

The fund currently has its biggest sectorial active positions in consumer durables, retailing and transportation. The manager is underweight banks, insurance and food & beverages. The geographic breakdown sees the fund's biggest positions in Ireland, Denmark, Sweden and Switzerland.

About the fund

The fund manager Rory Powe looks for strong European growth companies that fall in to two camps, which he refers to as, established leaders and emerging winners. He defines established leaders, as having a clear road map for earnings and free cash flow that includes a 3 to 5 year expansion path. He defines emerging winners as, companies in the vanguard of new or existing markets that have clear competitive advantages already. The maximum he will invest in emerging winners is 33% of the fund.

Rory Powe takes a bottom up approach to selecting companies for his fund, which means he is looking for business that have recurring revenues underpinned by pricing power, high gross margins, robust cashflow, a strong balance sheet and cash returns.

Observations

The fund is suitable for those investors looking to invest in a fund that offers a core portfolio of European equities, excluding the UK. Due to the nature of the region and the development of their financial markets we rate this as a medium risk investment for those investors who want broad European region exposure in a well-diversified portfolio.

Comment last reviewed November 2016.

Author: Sheridan Admans, Investment Research Manager

Our risk profile

M6 - European Funds

These funds will generally look to invest across the European spectrum excluding the UK.


Cumulative Performance to 22/03/17

(Total percentage return with the net income (dividends) reinvested)

- Man GLG Continental European Growth Prof C Fund Acc

- IA Europe Excluding UK


Discrete Annual Performance to 31/12/16

Percentage performance figures in 5 discrete (distinctly separate) consecutive one year periods
0-12m % 12-24m % 24-36m % 36-48m % 48-60m %
Man GLG Continental European Growth Prof C Fund Acc 16.52 31.69 7.06 28.62 25.07
IA Europe Excluding UK 16.41 9.27 -0.94 26.13 19.03


Top holdings

%

Pandora As 6.84%
Ryanair Hldgs 6.77%
Moncler Spa 5.45%
Essilor International 5.38%
Chr Hansen Hldgs A/s 4.96%
Geberit Ag 4.51%
Glanbia 4.51%
Asml Holding Nv 4.27%
Yoox Net-a-porter Group Spa 4.17%
Loomis Ab 3.92%

Classification

%

Irish Equities 16.70%
French Equities 14.46%
Swedish Equities 14.06%
Danish Equities 12.91%
Italian Equities 11.30%
Swiss Equities 11.26%
German Equities 4.98%
Dutch Equities 4.27%
International Equities 3.44%
Uk Equities 3.36%
Spanish Equities 3.26%

Basic fund information

Currency Sterling
IMA Sector IA Europe Excluding UK
Bid price (p) n/a
Mid price (p) 478.90
Offer price (p) n/a
ISA eligible? Y
Fund launch date 30/06/98
Fund size (£m) 574.80
OCF as at 01/07/2016 0.90%
AMC % 0.75
Yield % 0.38
Dividend Date Jun

Ratios

%

Alpha 11.30
Beta 0.76
Sharpe 1.45
RSquared 0.67
Information 1.48
Volatility 9.87

Quartile rankings

1 year 3
3 year 1
5 year 1

Manager biography - Rory Powe 01/10/2014

Rory is a long-only Portfolio Manager focusing on European growth stocks, and joined Man GLG ('GLG') in July 2014. Prior to this, he founded Powe Capital Management in 2001 and for 12 years managed its European funds. Before founding PCM Rory was a global partner at INVESCO, and ran their flagship continental European strategy for 10 years. He graduated from Trinity College, Oxford University, in 1985 with a BA (Hons) in Modern History. Rory has 27 years of European equity experience.


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Performance data correct as at 22/03/17

To find out more about how we arrive at our views on investments and risk, please read our investment research policy

Price total return performance figures are calculated on a bid price to bid price basis (mid to mid for OEICs) with the net income (dividends) reinvested. Performance figures are shown in Sterling unless otherwise specified.


Source: Financial Express