Patient value investing pays off-a European fund with 115 percent performance in 5 years (photo: freepik)
Anyone who only thinks of dust and standstill at Value does not have Richard Halle on the screen. The fund manager of the M&G European Strategic Value Fund is one of the quiet stars of the scene. With an increase of 115 percent over 5 years, it delivers one of the best performances in Europe. His recipe for success: long -term thinking in a world that only looks at the next quarter of the quarter.
A fund like a rock in the surf
If you look at the best European funds of the past few years, one thing is noticeable immediately: ETFs can surprise again and again at short notice-but if you invest in the long term, you often end up with active strategies. And here a striking number of funds with value focus lead the field.
Right behind Oliver Kelton (Ardtur European Focus) and Nicholas Walewski (Alken European opportunities) is part of another secret giant: the man who was in guided by Richard Halle M&G European Strategic Value Fund (Isin: LU1670707527). The fund was launched in 2018 and has been delivering quietly and steadily since then: plus 115 percent over 5 years, plus 33 percent over 3 years – and with almost British serenity.
The strategy: value beats hype
Halle relies on the simple idea that markets are efficient in the long term, but often at short notice. While other investors are driving from the news noise and the pressure of short -term performance goals, he thinks in the long term – and acts accordingly. The world has become even faster and more nervous by AI, hedge funds and flood of information, he explains. That is precisely why its classic value style is more relevant than ever. Even when the approach was out, Halle remained steadfast – and was expressly supported by M&G.
Cheap is not the same – but sometimes just
Halle currently sees the European stock exchanges very differentiated. On the one hand, there are the highly rated quality stocks, on the other hand a lot of substance values that are traded with high discounts. The latter are his terrain. The portfolio currently has one Course-profit ratio (KGV) of 9.2 – according to Halle, the fund has never been so cheap.
Banks in particular are again in focus. Commerzbank, for example, was first included in the portfolio in 2024 – and remained. Many banks are as strong as rarely before, but would still be rated with KGVs of 6 to 7. Here Halle sees immense potential for catching up.
The composition of the portfolio is surprisingly balanced: Siemens, Tesco, Bank of Ireland, Astrazeneca and Shell lead the field – with a weighting of around 2.5 to 2.9 percent each. The most important industries are industry, health, consumption and finance. Sustainable and ethical criteria (ESG) also play a role in the selection of stocks without being dogmatic.
Strong performance, solid risk
Anyone who put on Halle was rewarded. In the past 12 months, the fund has increased around 9 percent – with a volatility of only 10.1 percent. This shows that the strategy not only delivers, it is also comparatively gentle on the nerve. The cost structure is in midfield with a total cost rate (ter) of 1.70 percent.
If you want to save, you attack the Clean tranche-only 0.95 percent per year falls here, which is reflected directly in performance: this variant brought a whopping 128 percent over 5 years-an increase of 8 percentage points compared to the standard tranche.
Conclusion: the underestimated star
The M&G European Strategic Value Fund is not for quick winnings – but exactly the right vehicle for long -term conviction. Richard Halle shows that Value is anything but dead. On the contrary: the style lives – quiet, strong and substance -oriented.
Disclaimer:
No investment advice. No call to buy or sell securities.