Fund Rationale: BlackRock BGF European Equity Income

BlackRock BGF European Equity Income Fund (the “Fund”)
SGD Hedged Class D6 Monthly Distribution Shares (ISIN: LU2357541858)
Fund Manager Page
Daily Price & Charts

Endowus has selected the Fund as it offers:

  • Deep bench of portfolio managers and analysts that manage a range of European equity strategies with strong track records;
  • Disciplined investment process that is fundamentally driven and seeks balanced exposure to quality, growth and income; and
  • Access to clean share class with no trailer fees to achieve the lowest possible fees.

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Key Information

Fund Objective: Seeks an above average income without sacrificing long-term capital growth by investing at least 70% of its total assets in equity securities of companies domiciled in, or exercising the predominant part of their economic activity in, Europe.

Suitability: Investors who seek an above average income from equity investments without sacrificing long term capital growth, seek to invest in equity securities of companies domiciled in, or exercising the predominant part of their economic activity in Europe and are willing to adopt capital and income risk.

Cost: 

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  1. Total Fund-level Fees include fund management fee of 0.75%.
  2. This is a clean share class that offers the lowest possible fees. There are no trailer fees for clean share classes.
  3. Endowus does not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Access Fee.

Fund Characteristics

Fund Inception: 12 March 2010
Share Class Inception: 14 July 2021
Benchmark: MSCI Europe 

Fund AUM: SGD 3.38bn
Source: MorningStar as of 2 August 2021. Please refer to the FMC page for the most updated AUM.

Regional Allocation:
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Sector Allocation:
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Source: MorningStar as of 30 June 2021. Allocation data indicate actual exposure as a percentage of the Fund's total Net Asset Value. Please refer to the Fund Manager Page for the most updated information on Fund Holdings and Breakdown. 

Selection Criteria

The Blackrock BGF European Equity Income Fund is managed by a team of experienced portfolio managers and analysts. The investment team is relatively sizable with 18 portfolio managers and sector analysts in total. Andreas Zoellinger and Brian Hall co-comanage this fund and both of them have over 20 years of investment experience and run other European equity strategies with strong track records. Importantly, Andreas was one of the pioneers who launched the Fund and has been with the Fund since its inception. They work closely with the rest of the team on idea generation and company research. The team is collaborative with daily interactions and structured meetings.

The Fund has a disciplined investment process that is fundamentally-driven. Analysts are organised by broad sectors and they conduct in-depth company analysis using a common research framework with clear and timely conclusions. With a focus on capital preservation and long term wealth accumulation, the company analysis is done using three lenses: Wealth Creation (companies which they believe can create superior returns for shareholders over the long term), Resilience (understanding the resilience of the business model through a cycle) and Change (identifying changes within a business that could drive future earnings and cashflow). Portfolio construction process is long term, conviction-led and risk-aware, with constant feedback loops from analysts and clear checkpoints for reassessment of investment cases. However, because of the Fund’s focus on fundamentals, it could underperform when the equity market deviates from fundamentals and skew towards technicals or sentiment.

The Fund has achieved a consistent and balanced exposure to quality, growth, and income. Over the years, its total return of the fund can be approximately split into 50/50 capital appreciation and income. Endowus worked with BlackRock to launch a clean share class with no trailer fees, making this Fund competitively priced against other funds in this category. 

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Updated by Endowus: August 2021

** Disclaimer: Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Any opinions expressed reflect a judgment at the original date of publication by us and are subject to change without notice.
The prospectus, profile statement, product highlight sheet, fund factsheet or other offer or product documents may contain references about the expected risk tolerance of their target investors. These are in no way indicative of how we at Endowus have assessed your risk tolerance based on your stated objectives and financial situation. Endowus accepts no responsibility for investment decisions made in response to the expected risk tolerance levels mentioned in the product or offer documents.