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  • bee December 2011
  • msf December 2011
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Looking for a European Dividend Aristocrat Fund

beebee
edited December 2011 in Fund Discussions
Equities in Europe have been hammered by the debt problems of their banks and sovereigns.

I am thinking that, much like the US Dividend aristocrats, there is an opportunity for owning great European companies that have a history of increasing their dividends as well as have a global footprint.

Here's is link of such companies:

http://www.incomefromdividends.com/397/european-dividend-aristocrats-2010

I own a small stake in VGK (similar to VEURX). It pays a great dividend (5.22%) but, owns an equal weighting of the European market which include European financials (14-17%) which should have more downside risk compared to other sectors.

In short, I am looking for funds that holds European dividend paying companies minus the financials.

I came across HAINX, ARTKX, IEGAX, TBGVX, WGRNX mentioned in the article:

http://finance.yahoo.com/news/Our-Five-Nominees-ms-1614407887.html?x=0

Anyone other thoughts?

Comments

  • msf
    edited December 2011
    Replaced - see below.
  • msf
    edited December 2011
    MEURX.

    European fund (unlike the alternatives you listed), currently only 10% in financials (vs. the typical 16 1/2 percent). Pretty low turnover. What I've never liked about it is that it almost always hedges (though in the short term that could prove beneficial).

    There are only about 27 European funds in M*'s database, once you eliminate the single country funds (Russia, UK), and the regional funds (emerging Europe, Nordic, eastern Europe). Of these, MEURX has the 7th smallest exposure to financials.

    You might also look at HFEAX - it's available NTF/NL at Schwab. Even lower financial exposure (6.7%) than MEURX, a somewhat lower (but still rich) yield, expenses almost 50% higher, and it's a fund I have not looked into so I can't tell you more. Given that is has a 67% turnover, you need to check into its strategy: just because it currently doesn't own many financials doesn't mean that a year from now that will be true, with most of its portfolio replaced (unlike MEURX).

    Finally, you could look at a FTSE 100 index fund. There's an iShares ETF (ISF) sold on the London exchange, so if you've got access to foreign exchanges, you might be able to purchase it that way (though it's not registered for sale to US citizens).

    (Note also, VGK is not "like" VEURX, it is the same fund, just as VEUSX (Admiral shares) is also the same fund.)
  • beebee
    edited December 2011
    Reply to @msf:

    Thanks for the reply msf,

    Looks like HFEAX had quite the comeback from it's 2009 lows. 108% gain in 2010.

    Here's a profile video of Stephen Peak, manager of the fund:
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