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

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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.

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European Equities

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