European Equities

Why invest in Europe?

Discover why taking a step back from the macroeconomic malaise of Europe is beneficial to investors.
September 2019

Philip Webster

Director, Portfolio Manager, European Equities

LEARN MORE ABOUT THE AUTHOR
Share
Subscribe to our Insights

Risk Disclaimer

The value of investments and any income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount invested.

Views and opinions have been arrived at by BMO Global Asset Management and should not be considered to be a recommendation or solicitation to buy or sell any companies that may be mentioned.

 
 

In a recent webinar, Philip Webster discussed why taking a step back from the macroeconomic malaise of Europe is beneficial to investors, resulting in them being able to seek out a fund positioned to take advantage of structural rather than cyclical growth.

A quick glance at European headlines reveals many reasons for the current investor anxiety around European equities, at least from a macroeconomic perspective: the German economy is slowing, while tensions in Spanish and Italian politics are heating up – and that’s before we even mention Brexit and all its ongoing uncertainty. 

European equities are unloved by investors, who are either significantly underweight or have no exposure to this asset class at all. Those who are still investing in Europe are crowding into a small number of defensive sectors such as utilities, healthcare and food & beverages, which in some cases is driving ridiculous rerating.

But we believe an unloved environment such as this creates plenty of mispriced opportunities for structural growth over the medium to long term. It can really pay to be patient here, focusing on the quality and value of the stocks themselves rather than their macroeconomic background.

Risk Disclaimer

The value of investments and any income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount invested.

Views and opinions have been arrived at by BMO Global Asset Management and should not be considered to be a recommendation or solicitation to buy or sell any companies that may be mentioned.

In fact, as a stockpicker, where a company is domiciled bears no resemblance to how it makes money or the returns it is going to generate in the future. The strategy driving the European Select Equity Fund reflects these views: it is a high-conviction portfolio that very selectively owns 25 stocks where the team see structural – not cyclical – growth.

Watch the webinar to discover Philip Webster’s views on Europe and learn about the European Select Equity Fund.

Related capability

European Equities

Subscribe to our Insights
More articles by Philip Webster
No posts matching your criteria
3 min read

Value (and quality) matters

Phil Webster explains how recent weakness allowed him to invest in quality names at the right price and discusses a rare IPO addition to BMO UK High Income Trust.

3 min read

Stock picking to protect

Phil Webster, Fund Manager, explains why picking stocks that protect in times of market falls is as important as investing in companies to grow.

4 min read

European Equities: keeping the faith!

Whilst those around us capitulated, and greed turned to fear, we held steady and continued buying more of the weaker names. Was this easy?

3 min read

Meet Phil Webster

Meet Phil Webster, Fund Manager of the BMO UK High Income Trust

10 min read

Technology: love it or loathe it

Good old-fashioned ‘greed’ and some stellar top-line growth have made technology an interesting and fruitful place to invest over the last decade or so.

10 min read

2018 review: what we got right and wrong

There is no way to sugar-coat 2018 – it was the worst year for equities since 2008

VIEW MORE