On a valuation basis, Europe certainly provides far better opportunities than the UK or US and active fund managers are well equipped to find value. In large-cap land, how different is a European multinational to a US multinational? Not very. And they will all be benefiting from a weaker euro. At the other end of the scale, there are still 27 countries in the EU (not including the UK) – all very different, with many good medium and smaller companies from which to choose. Active managers can accumulate positions in these businesses at decent prices and, over the long term, this should pay off.
Our current band of Elite Rated active funds include BlackRock Continental Europe and European Dynamic, GAM Star European, Henderson European Select Opportunities and T. Rowe Price European Smaller Companies.
