Europe not only offers ample opportunity to invest in strong domestic franchises, it also has a considerable number of global brands and technology leaders, and vast industrial expertise.
Opportunities:
- European equities look attractive, in the context of stable economies and growth rates, supported by accommodative monetary policy.
- The European equity market is cheap in relation to its historical average. It is trading at 12x prospective earnings and whilst some downgrades from cyclical stocks are anticipated in Q1, we do not expect these to be worse than currently forecast. -The perception of political risk ebbs and flows in Europe. At the moment, investor concerns are pronounced, especially relating to the uncertainty surrounding Brexit.
- European GDP is likely to slow in 2019 from 2.1% to 1.8%.
Investment philosophy & process:
- The funds are managed bottom-up by an experienced team of stock pickers with a long-term investment focus.
The team uses a top-down analysis based on its thematic ideas with a bottom-up investment process which leads to a high-conviction concentrated portfolio of 50–70 stocks.
After researching the market and sectors, we come up with thematic, macroeconomic and sector views. Then, most of our process is bottom-up, involving qualitative screening, company meetings and broker research inputs.
- Quantitative screening and research based on valuations, growth, income, returns
- Meetings with companies to gain in-depth knowledge about them (500+ per year).
The fund managers will take into account the political and economic environment, but only invest if they find companies whose balance sheets match their investment criteria.
The management applies strict risk management, analysing and controlling risk at stock, sector and overall portfolio level.
Our range offering
- Europe Equity
- Europe Small Cap Equity
- Euro Equity Income
- Europe Equity Flex
- Europe Equity Dividend+
- Positive Impact Equity
