Threadneedle European Select Fund outperforms benchmark

July marks the two year anniversary of David Dudding assuming management of the Threadneedle European Select Fund.

Despite recent market uncertainty and a lacklustre economic environment, using a flexible and conviction led approach, David has successfully ensured the fund has delivered returns well in excess of the benchmark.

Since taking over management of the fund in July 2008, Dudding has refocused the fund as a high alpha portfolio, taking sizeable positions to readily distinguish the fund from the index and other core European portfolios. This approach has delivered performance that has beaten its benchmark of the FTSE World Europe ex UK and the median of its peer group since he took over.

The fund invests in a relatively concentrated portfolio of 40-60 Europe ex-UK stocks and was launched in October 1986. Since then it has focused on conviction-based alpha ideas generated through rigorous, fundamental analysis of all positions taken. The relatively concentrated structure of the portfolio also means the team is capable of exploiting the top stock picks, whilst managing risk via Threadneedle's robust risk management procedures and by diversification in terms of exposure. In the longer term, the fund has consistently outperformed the peer group median and delivered top quartile performance over 1, 2, 3, 4 and 5 years.

Gary Collins, Head of UK Wholesale Distribution at Threadneedle says: "David has proven his excellent skills as a fund manager over the last decade with consistent outperformance against benchmarks for both the European Smaller Companies Fund and on the European Select Fund.  This is an impressive achievement as both he and his team have delivered substantial returns during difficult times in a region with volatile markets."