Comgest Growth Europe ex UK
Comgest Growth Europe ex UK is a high conviction fund investing in high-quality, long-term growth European companies head-quartered - or carrying out their predominant activities - in any European country excluding the United Kingdom. Comgest has a strong track record investing in European equities going back to 1989.
Our Opinion
Fund Managers
Fund Managers
Alistair Wittet, an Analyst and Portfolio Manager at Comgest since 2012, specializes in European equities and co-leads the Pan Europe and Europe ex UK strategies. He is also a member of the Comgest Group's Investment Committee. Alistair began his career as an Analyst at Standard Life Investments in 2006 and later worked at Citigroup in London, focusing on the pan-European food retail sector. A British and French national, he graduated in Geography from Durham University and is a CFA® charterholder.
Franz Weis, a Portfolio Manager specializing in European equities, joined Comgest in 2005. As the firm's Chief Investment Officer (CIO) and a Managing Director, he leads European research and co-manages most of Comgest’s European equity strategies. Franz oversees the investment teams and chairs the Investment Committee, which implements Comgest’s long-term investing philosophy. He began his career in 1990 at Baillie Gifford & Co. and later worked at F&C Asset Management as a Senior Portfolio Manager. Franz holds a Master’s degree in International Banking and Financial Studies from Heriot-Watt University, where he received the International Bankers in Scotland Prize in 1990.
James Hanford joined Comgest in 2018 as an Analyst and Portfolio Manager focusing on European equities. He plays a key role in researching a diverse range of quality growth stocks across Europe. James began his career in 2011 as an Analyst at Credit Suisse and spent four years as a global generalist at Capital Group before joining Comgest. He holds a Bachelor’s degree in Economics from the University of Durham, where he graduated top of his class, and a Master’s degree in Finance from the University of Cambridge. James is also a CFA® charterholder.
Fund Performance
Risk
Investment process
Comgest has a clear, team-based investment philosophy which is used across all its funds. The team looks for quality companies that can sustainably grow their earnings over time. It invests for the long term, ignoring short-term market noise. All portfolio managers also work as analysts and they are free to look at companies in any country or sector.
The philosophy is embedded in an initial screen where six different areas are analysed: the business model; financial criteria, organic growth, barriers to entry, sustainability and quality of company management.
This screen reduces the initial universe down from 1,400 to 170 companies and detailed analysis is then conducted on the remaining firms. It is often a lengthy process.
Stocks which pass this second stage (usually around 70) will enter the investment universe, before valuations are considered. A unanimous team decision is required for a stock to be accepted in the portfolio.
Environmental, Social and Governance factors are also an important consideration, with controversial weapons and tobacco companies excluded entirely. Comgest Growth Europe ex UK's quality growth bias also means that is naturally very underweight oil & gas and mining companies, which tend to be quite cyclical.
Risk
The fund is very high conviction and concentrated with around 30 holdings, so there is stock-specific risk and investors are reliant on the team getting their investment choices right. New stocks usually start as a 1% position and will be added to over time. There are no hard sector or country limits, but the portfolio is carefully managed to ensure it is well diversified.
ESG
ESG - Integrated
Comgest considers ESG issues as integral to the investment process, with each of the Environment, Social and Governance elements all given equal importance when performing stock analysis - from discovery to decision making. The managers look for companies exhibiting sustainable growth characteristics, which leads them to assess many non-financial criteria as part of their research process, such as corporate culture, governance structure, innovation, stakeholder relationships, environmental impact and policies. They then assess each company using their in-house ESG assessment tool, resulting in a rating from 1-4 (1 being an ESG leader, 4 being a laggard where they have identified need for improvement). This rating then impacts the discount rate they use in their proprietary valuation models. As impacting the discount rate leads to greater or lesser upside for the stock, ESG is hardwired into portfolio construction and the decision-making process.