Aberdeen team adds Europe holding
Multi-manager team rejigs European exposure as Spanish bank bailout agreed.
Aberdeen’s multi-manager team has added a new European holding to one of its funds in a bid to boost its exposure to the continent.
The move comes as Spain last week became the fourth recipient of a eurozone bailout although the funding – expected to be up to €100bn (£80.7bn) –will go to the country’s stricken banking system as opposed to its government, unlike in Greece, Ireland and Portugal.
Rob Bowie, fund manager on the multi-manager team at the group, said the team had added the Dublin-domiciled Hermes Source Cap Europe excluding UK fund managed by chief investment officer and lead manager James Rutherford to its £73.7m Constellation fund, although the fund’s weightings in Europe have remained unchanged.
“Mr Rutherford set up the business after nearly 20 years at Fidelity to establish a boutique asset manager with a sole focus on European equities,” Mr Bowie said. “In conjunction with [chief executive Andrew] Parry, the duo has grown a successful franchise within the Hermes stable.
“Through a long-term investment horizon, the team focus on sustainable change which
is under-appreciated by the market in a high conviction portfolio.”
Mr Bowie said the team had trimmed existing holdings in the £491.7m JO Hambro Capital Management Continental European fund run by Paul Wild and the £920.7m BlackRock European Dynamic fund run by Alister Hibbert to make room for the new purchase.
The manager explained that the JO Hambro and BlackRock positions remained “core” and the team was simply making its investments in Europe more diverse.
“The Hermes fund does have a growth tilt to it which helps broaden the European exposure in our portfolio,” Mr Bowie said.
“It provides us with the opportunity to increase it in conjunction with the other two holdings when the time comes.”
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