Despite expectations of continued poor economic growth from the region over the course of 2015, there is a growing expectation that perhaps, from an equity point of view, the region could surprise on the upside next year. With that in mind, and taking account of the undiminished demand for yield by investors, this week we compare the Waverton European Income Fund and the BlackRock Continental European Income Fund.
The Waverton fund is the larger of the two with £1.39bn in assets under management and has performed exceptionally well over the last five years returning 136%, compared to 64% recorded by the sector as a whole. Over the three years, that return is 110%, compared to the sector’s 57%.
At £672.9m, the BlackRock fund is significantly smaller than the Waverton fund, but it too has also performed well, but was only launched in 2011, so only has a three year track record. Over three years the fund produced a return of 60%.
Recent performance has been more mixed, however, with both funds down 0.62% and 0.51% respectively over three months.
