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BLACKROCK CONTINENTAL EUROPEAN INCOME D

BLACKROCK CONTINENTAL EUROPEAN INCOME D - Overview

Overview of BLACKROCK CONTINENTAL EUROPEAN INCOME D Buy in ISA Buy in Investment Account

The fund targets a high income (at least 10% above the European market yield) as well as capital growth through investment in large and mid-cap European (ex UK) equities. Manager Andreas Zoellinger picks stocks from amongst those buy-rated by BlackRock’s European analysts, though with an emphasis on income. There is no yield requirement for individual stocks and he will invest in both high income companies and lower yielding companies offering dividend growth, adjusting exposure to each depending on market conditions. As a result the yield and yield premium over the market can vary.

  • Standard Initial Charge 0.00%
  • Initial charge via Bestinvest 0.00%

Fund summary

Sector Europe Excluding UK
Structure UNIT TRUST
Launched May, 2011
Size £1,635m
Yield 4.3%
Charging basis Capital
Dividends paid 31 Jan, 30 Apr, 31 Jul, 31 Oct

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.20%
Annual management charge 0.75%
Ongoing charges figure 0.92%

Risks

Before investing make sure you have understood the risks relevant to the fund by reviewing our Risk Warnings section. Further information on the risks are contained in the fund's Key Information Investor Document, which we make available to you before you make a decision to invest, alternatively it is available on request.

Bestinvest view

Zoellinger has spent almost his entire career at BlackRock and was already successfully running money prior to the launch of this strategy in 2011. Since then he has consistently met the fund’s income target whilst also outperforming its benchmark index. The focus on more reliable stocks has typically led to a more defensive performance profile – the fund has often lagged rising markets but provided a degree of resilience when markets have fallen. Longstanding co-manager Alice Gaskell left BlackRock in May 2018, but Zoellinger is supported by two income-specific analysts as well as 16 other members of BlackRock's experienced European team.

Portfolio

Allocation Proportion(%)
Equity 100
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 0
Allocation Proportion(%)
UK 8
Europe 91
North America 0
Japan 0
Pacific 1
Emerging Markets 0
Allocation Proportion(%)
Large Caps 80
Mid Caps 16
Small Caps 4
View all performance data for this fund

Investment process

The investment universe is large and mid-cap European equities with a market cap of above £1bn, around 300-350 stocks. Stocks are allocated by sector, with each sector covered by a “research pod” led by a senior manager on the European equity team with analyst support. Ideas are sourced from screens on valuation metrics and earnings momentum, from sector analysts and from factor and thematic trends. The analyst team carry out fundamental research on each stock, then write it up on a common template and give it a 12 month price target and a rating from 1-5 based on risk-adjusted conviction. For this fund Zoellinger looks for three types of company: (1)High yielding companies where he believes the yield is secure, often value stocks; (2)High dividend growth companies with lower current yields - structural winners; (3)Quality companies offering solid yields and dividend growth with a high degree of predictability. He primarily selects these companies from those highly rated by the analysts, but he has a longer time horizon than the rest of the team as well as the income requirement, so sometimes uses some lower-rated stocks. Dividend reliability is key for Zoellinger, and he will sell any stock where he loses confidence in the next dividend.

Live feed

Bid price(inc) 147.50p
Accum units 203.80p
Fund commentary 13/08/18
Fund data updated on 23/05/19

Asset allocation

Allocation Proportion(%)
Equity 100
High yield bonds 0
Quality bonds 0
Property 0
Commodities 0
Hedge 0
Fund cash 0

Equity Geographic

Allocation Proportion(%)
UK 8
Europe 91
North America 0
Japan 0
Pacific 1
Emerging Markets 0

Equity Capitalisation

Allocation Propor
tion(%)
Large Caps 80
Mid Caps 16
Small Caps 4

Top 10 holdings

As at: 28/02/2019
4.3512%Total Sa
4.3206%Vinci Sa
4.2941%Roche Hldg Ag
4.2055%Nestle Sa
4.1235%Sampo
4.0539%Sanofi
3.8815%Unilever Nv
3.8351%Leg Immobilien Ag
3.6564%Scor Se
3.6207%British American Tobacco
Source: Trustnet

Sector breakdown

Financials 26%
Industrials 22%
Health Care 17%
Consumer Goods 15%
Utilities 7%
Oil & Gas 4%
Consumer Services 4%
Telecommunications 3%
Technology 1%
Money Market 0%

Portfolio details

40-70 stocks, though typically at the lower end of this range.

Constraints

Max 5% UK equities. Target tracking error 3-8%. Target beta less than 1.
The portfolio usually has very little commonality with the benchmark and so performance can be expected to differ markedly on occasions.

Average monthly relative returns Bestinvest MRI
14/15 15/16 16/17 17/18 18/19   3 years 5 years Career 3 years 5 years Career
-0.23%   -0.23%
Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Andreas Zoellinger

Manager. Zoellinger began his career a trainee with a major German bank, then joined Merrill Lynch Investment Managers (MLIM) as a European equity analyst in 2001. MLIM merged with BlackRock in 2006. Zoellinger now has responsibility for Eurozone portfolio management, adopting a flexible style, as well as being manager of the team’s income portfolios and head of the consumer research pod. He earned a Diplom-Kaufmann degree in Business Administration from the University of Munich and the University of Edinburgh.

Track record

The track record of Andreas Zoellinger in managing mutual funds in this sector is still too short for us to draw any meaningful conclusions and so our assessment is based largely on qualitative aspects.

Periods of worst performance
Absolute -11% (July 2018 - December 2018)
Relative -3% (December 2018 - April 2019)

Sector record since May 2018 (1 yr)




About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

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