Fund in Focus: BlackRock European Dynamic

Andy Parsons, Advice team manager at The Share Centre, explains why investors looking for long-term capital growth and some exposure to overseas markets should consider the BlackRock European Dynamic fund.

"The BlackRock European Dynamic fund aims to achieve long-term growth for investors. The fund invests in companies incorporated or listed in Europe, excluding the UK, while being run on a concentrated basis with the portfolio generally holding between 35 to 65 companies at any one time.

"It is well suited to investors looking to add diversification to a portfolio that is generally UK focused. Adding the BlackRock European Dynamic fund would be a natural progression into overseas markets, while maintaining close geographical proximity to the UK.

"European exposure offers investors the ability to invest in the expertise of other countries, such as Germany who is at the forefront of world class engineering and car manufacturing and Denmark a leader in alternative energy solutions.

"The fund is managed on a day-to-day basis by Alistair Hibbert. He took over the helm in 2008, having joined as part of the experienced team that had moved across from the old Scottish Widows Investment Partnership European team and have been recruited to take this fund forward. Hibbert manages the underlying constituents, utilising a ‘bottom up' research process to identify opportunities that hold either growth or value investment characteristics.

"In terms of performance, the fund has outperformed its sector even when market conditions have been tough; on a cumulative basis, the fund has returned over 88 per cent compared to just 39 per cent over the last five years.

"For investors prepared to venture outside of the UK shoreline, we believe this fund will add diversification and exposure to a key part of the global economy."