Alex Crooke, head of global equity income at Henderson Global Investors, observes: “As the US engine of global dividends is slowing down, so Europe is showing encouraging growth.”
Tim Crockford, portfolio manager on the Hermes Europe ex UK Equity fund, acknowledges it is a challenging time for investors and asset allocators but sees Europe as offering the best relative value among developed markets.
He adds: “In a market where central bank policy is increasingly distorting equity valuations, structural change continues to unearth new opportunities that are being overlooked by a market that is more focused on next week’s rate move, rather than next-generation technology.
“We would encourage investors to take a break from analysing the parlance of central bankers, and dig down into the sectors and companies where change is rife, rather than buying or selling the market.”
Ellie Duncan is deputy features editor at Investment Adviser