Barings Europe Select Trust

Barings has launched an Irish-domiciled mirror fund - the Barings Europe Select Fund. The fund maintains the same portfolio management team, objective, benchmark, fee schedule and other key features as the existing U.K. domiciled fund. The only differentiating feature is that the fund is domiciled in Ireland and subsequently able to preserve its UCITS status regardless of the outcome of Brexit. View more information on the Barings Europe Select Fund.

The Barings Europe Select Trust, managed by Nicholas Williams and the European Equity team, employs a proven process exploiting market inefficiencies. The team employ bottom-up research focused on identifying mispriced stocks. In this under-researched environment, we remain convinced that smaller European companies offer a compelling opportunity to add value through market analysis and effective stock selection.

Relative to their large-cap peers, smaller companies have historically generated superior risk-adjusted returns and we believe this trend should continue over the medium-to-long term.

Objective

The Trust aims to provide a total return, including both capital growth and dividend income (after fees have been deducted), in excess of the MSCI Europe ex UK Small Cap (Total Net Return) Index over a rolling five year period by investing in equity and equity related securities in Europe excluding the United Kingdom.

Strategy

The Trust will seek to achieve its investment objective by investing at least 75% of its total assets directly and indirectly in equities and equity-related securities of smaller companies (i.e. bottom 30% of total market capitalization) incorporated in, or exercising the predominant part of their economic activity in Europe or quoted or traded on the stock exchanges in Europe.

Who Should Invest

The Trust is designed for investors seeking a strategy that targets long-term capital growth by investing in smaller companies in Europe excluding the U.K.

Risks

The value of investments can fall as well as rise and investors may not get back the amount originally invested. The Trust can hold smaller company shares which can be more difficult to buy and sell as they may trade infrequently, in small volumes and their share prices may fluctuate more than those of larger companies. Changes in exchange rates between the currency of the Trust and the currencies in which the assets of the Trust are valued may also affect the value of the Trust. The Trust may also use derivatives for investment purposes. These are complex instruments that carry the risk of causing increased volatility in the value of the Trust.