Graham O’Neill, director at Rayner Spencer Mills, says Rice’s process has paid off in the unpredictable market conditions, particularly since the credit crisis in 2008. "Chris Rice [pictured] has demonstrated the ability to adapt to changing and at times challenging market conditions," he said. "This illustrates the pragmatism he applies to interpreting the business cycle in an effective and consistent manner."
Mark Dampier, head of research at Hargreaves Lansdown, said: "We noted in our records of 2003 that Chris was extremely focused on proving himself as a fund manager – well, 10 years on and I think we can say with confidence that he has more than fulfilled this. Here’s to the next 10 now."
Cazenove European has been a standout performer over the last decade, significantly outperforming both the IMA Europe ex UK sector and FTSE World Europe ex UK index.
Over 10 years, it has returned 172.41 per cent, while the sector and index are up 135.38 per cent and 146.38 per cent respectively.
Performance of fund vs sector and index over 10-yrs
Source: FE Analytics
This puts it well within the top quartile of its sector. It has been significantly less volatile than its sector and index over this period as well.
While Rice’s fund is second quartile over one and five years, and third quartile over three, it has outperformed its sector average in three out of the last five years, significantly so in the downmarket of 2008.
However, it lagged the sector in 2009 and 2010 as conditions improved.
Over its 10-year history, the fund has been one of the most stable in the sector, with a top-quartile annualised volatility of 18.5 per cent, according to FE data.
Jason Hollands, managing director of business development and communications at Bestinvest, says he likes the fund, and European equities in general at the moment.
"It’s a fund that will adapt to different market environments, not just adhere to a growth or value bias," he said.
"Chris Rice has a very long track record managing European equities, having joined Cazenove Capital from HSBC. Over his career he has delivered good risk-adjusted returns."
"His approach can be described as 'business cycle' investing, which is about adapting investment criteria to suit the economic environment as it evolves rather than rigidly focusing on valuation or momentum, for example."
"The focus is largely on large cap stocks; mid caps are held but the fund has little exposure to small caps."
Hollands points out the fund has had a more difficult period over three years, but delivered solid performance in 2012 and over the longer term.
"The fund is well ahead over five and 10 years but had a tougher period in 2009 and 2010, which impacts the three-year numbers. However, we like European equities, particularly global brands, and therefore his portfolio should be well positioned for any re-rating of these stocks," he said.
He adds that the blue chip focus of the fund aids its low level of volatility, with recognised names like German pharmaceutical company Bayer, Swiss multinational pharmaceutical Novartis and German telecommunications conglomerate Deutsche Telekom featuring in its top-10 holdings.
Cazenove European requires a minimum investment of £1,000 and has a total expense ratio (TER) of 1.58 per cent.
Rice also runs the newly launched Cazenove European Income fund, which multi-manager Marcus Brookes recently added to the top-10 holdings of his £965m Cazenove Multi Manager Diversity fund.