Threadneedle European Select – fund manager change

David Dudding will step back as co-manager of the Threadneedle European Select fund on 1 January 2021. He will take up the role of deputy manager, while Benjamin Moore, the fund’s other existing co-manager, will assume the role of lead manager.

Dudding has managed this fund since 2008, and also ran the Threadneedle European Smaller Companies fund from 2002 to 2012. He is a highly experienced investor in European companies and has built up a strong track record over his investing career.

Moore has been co-manager of European Select since April 2019 and part of Threadneedle's European equities team since 2015. Similar to Dudding, he initially worked on the European Smaller Companies fund, analysing companies of different sizes and giving him a breadth of knowledge of the market. He also spent six years as a European smaller companies equities analyst with Goldman Sachs prior to joining Threadneedle.

Roberta Zeno will also become a deputy manager of the fund. She started at Threadneedle earlier this year and joined the financial services industry in 2008. She has previously worked for Close Brothers Asset Management, S&P and Schroders in roles including equity research.

Why this manager change?

In addition to the European Select fund, Dudding has managed a global equity fund since 2013. Stepping back from the European fund in the new year means he’ll be able to focus more of his time on the global fund, and is something we have expected since Moore became co-manager. We don’t think Dudding made this decision lightly, and believe he’s only comfortable handing over the reins after ensuring Moore is fully up to speed with the investment process.

We are disappointed to see Dudding take a slight back seat on this fund, given his success so far. That said, we are encouraged he will remain a deputy manager, a position he has confirmed he’ll maintain throughout the remainder of his career at Threadneedle. It means he’ll still have input in this fund and carry out research in European companies. Importantly, he’ll continue to work closely with Moore, Zeno and the rest of the team, including attending the same daily team meeting and company meetings.

We have met Moore a number of times and view him as a diligent and thoughtful investor. We believe he is well-familiarised with the fund’s existing philosophy and process and, while he has no fund management track record prior to joining Threadneedle, he does have the experience of having learnt from a highly experienced and successful manager in David Dudding. We are pleased the two will continue to work together.

Zeno is fairly new to the team, but both Dudding and Moore speak highly of her. She knew many of the companies in the fund before joining Threadneedle, and is prepared to offer challenge to the other managers. We will meet her in due course to better understand her investment style and responsibilities.

The managers are also supported by a well-resourced European equities team at Threadneedle. This group of analysts act as an important source of ideas for the managers, and helps to encourage challenge and debate in the team.

Moore doesn’t have much of a fund management track record in his own right, and inevitably this affects our conviction in the fund. That said, we believe he will be steadfast in using the same philosophy and process that Dudding has used for many years. It is also a comfort that Dudding will be deputy manager and the two will continue to work together. As a result, we still think the fund has long-term performance potential and it remains on the Wealth Shortlist. As always, we’ll inform investors if our views change.

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Threadneedle European Select Key Investor Information

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