Fund Objective

There is no fund objective available from this fund manager.

View on Past Performance

The FTSE World Europe (ex UK) Index posted a total return of +20.4% during the quarter, in sterling terms. During the quarter, we focused on companies and sectors where earnings are being upgraded, industry conditions are improving faster than elsewhere and where underlying pace of growth has yet to be appreciated by the market. Exposure to Financials and Telecoms was increased, where a combination of cost cutting and stabilising revenue should lead to earnings improvement.

Future Expectations

Although European economic data remains weak there are hopeful signs. The change of tone from the European Central Bank and the decision to reduce short-term interest rates should prove stimulatory, with prospects of further interest rate cuts to follow. With equities looking historically attractively valued relative to bonds, we believe the outlook for European equities is better, but growth is likely to prove slow for the moment.

Fund Details