Standard Life stresses benefits of European volatility

Europe currently compares favourably to other regions as an income generator, according to Standard Life Investments’ Will James, who said that valuation opportunities had been thrown up by volatility in peripheral European countries.

In a video interview with FTAdviser editor Ashley Wassall, Mr James, manager of Standard Life Investments European Equity Income fund, said markets tend to forget about the “inherent strength” of northern Europe.

Responding to a question about the efficacy of Europe as an income generator, Mr James said: “It is very attractive at the moment and that is being driven by the sovereign debt crisis that has depressed valuations.

“You are looking at a very attractive premium compared with other regions of the world - you are probably looking at a two percentage point differential in terms of dividend yield against the US, for example.

“From a growth perspective we are also seeing a lot of opportunity in terms of dividend growth.”

Click here to view the full video.