The output of the investment research process is a clear recommendation and a 12-month price target.
The team uses a rating system from one (strong buy) to five (very negative) when recommending stocks. Mr Hibbert will then determine whether the recommendation is suitable for the portfolio, the position size and point of purchase.
Daily reports generated by BlackRock’s extensive proprietary risk management systems allow him to monitor risk and portfolio construction is a continuous process: Mr Hibbert constantly analyses the impact of new ideas and information on the portfolio as a whole.
Mr Draghi is due to step down at the end of 2019, which poses the question as to who his successor will be, and what their policy will be for quantitative tightening.
For now, however, he and his promise remain in place. Earnings in the region are still improving and I do still like the European equity market as a hunting ground for investment.
This fund has delivered very high and consistent alpha over the manager’s tenure and I see no reason why this would not continue.
Darius McDermott is managing director at FundCalibre
