The Invesco European Growth Fund (Trades, Portfolio) is a four-star rated fund by Morningstar, and invests in European companies of all market caps. During the third quarter, the fund purchased four new holdings spanning several different industries.
The majority of the fund’s assets are invested in British companies at 36.5%, followed by 11.5% in Germany and 11.1% in Switzerland.
Cie Financiere Richemont SA (XSWX:CFR, Financial)
The fund purchased 151,256 shares of Cie Financiere Richemont for an average price of CHF 78.10 per share. The Swiss company is the world’s second-largest luxury goods company with products such as jewelry, watches and leather goods.
Richemont’s stock is down 19% over the past year and currently trades at 28x earnings, or at CHF 69.85. For the first six months of fiscal year 2015 ended Sept. 30, Richemont earned CHF 2.13 per share, up from CHF 1.94 in the first half of 2014.
The company’s dividend yield is close to the five-year high at 2.29%, with a payout ratio of 52%.
Deutsche Post AG (XTER:DPW, Financial)
Invesco purchased 389,337 shares of Deutsche Post, a mail courier company, for an average of €26.26 per share. The stock has held steady over the past year, declining just 4%. It currently trades at €25.23 or 21x earnings.
Over the past five years, revenue per share has grown at an average of 2.6% per year.
Invesco is currently the only guru fund with an open position in the stock. Causeway International Value (Trades, Portfolio) closed its position in the third quarter of 2013.
Origin Enterprises PLC (LSE:OGN, Financial)
The fund also bought 1,455,000 shares in Origin Enterprises, which traded for an average €6.99 during the period. Origin is an Irish company that manufactures and distributes agri-service products for sustainable farming.
The stock is down 9% over the past year and is currently priced at €7.48, or 12x earnings. EPS for FY 2015 ended July was 62 euro cents, up from 49 euro cents the year before.
Origin pays a dividend yield of 2.81% with a payout ratio of 33%.
Sandvik AB (OSTO:SAND, Financial)
Invesco’s fourth new buy during the period was 780,415 shares of Sandvik for an average of kr 79.71 per share. Sandvik is a high-tech industrial group that offers products and services in mining, exploration and construction.
Sandvik’s stock has held steady over the past year and is down just 1%. FY 2014 EPS was kr 4.79, up from kr 4.00 in 2013. Over time, however, it appears earnings have been in a slight decline.
The dividend yield is near the five-year high at 4.85%; however, the payout ratio may be unsustainable at 86%.
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