EuropeanDec 19 2014

Don’t miss cheap European equities: fund manager

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The lure of US equities could cause investors to miss the potential of their cheaper European counterparts, a fund manager has claimed.

Tim Stevenson, manager of Henderson EuroTrust, warned investors were attracted to US equities while at the same time overly pessimistic about the future performance of the European economy.

He said: “Not enough people are looking at the huge difference in value between the US market and the European one.”

Mr Stevenson also claimed there could be “slightly better growth” in Europe in the next few months, adding: “I think the issues in Europe will turn to be a big advantage because a lot of the companies are dollar earners.”

He also argued that while American companies focused on short term value their European equivalents had a longer-term approach which could promise stable returns.

Mr Stevenson’s comments came as research carried out by the Association of Investment Companies among its members found that 91 per cent of respondents expected markets to rise in general in 2015.

Some 39 per cent expected the European market to rise, followed by 22 per cent who thought this for the US market and 17 per cent who expected Asia Pacific excluding Japan to rise.

According to its factsheet of 30 November, Henderson EuroTrust had a market capitalisation of £161m.