James Nield, investment manager at Thesis Asset Management, is more bullish on Europe and has increased European equity exposure.
Following a change in sentiment caused by both the Dutch and French elections, Mr Nield said the asset manager has invested some of its cash exposure into the Oyster Continental European Selection fund from SYZ Asset Management.
Mr Nield said: “We reduced our underweight exposure to Europe as we see improving economic and employment data. Headline valuations of European equities are attractive especially relative to other markets.”
“The Oyster fund has been included across mandates as the fund complements our current European equity holding, the JPM Europe Dynamic (ex-UK).
"The manager runs a concentrated portfolio and looks for quality companies with growth potential that operate in volatile markets.” The fund offers unhedged exposure to the euro.
Managers at BlackRock are also feeling more positive about Europe. “Europe is showing some compelling growth. While the US is distracted politically, Europe can do well,” said Rick Rieder – BlackRock’s global chief investment officer of fixed income.
Pierre Sarrau, BlackRock’s global chief investment officer of multi-asset strategies, added: “It is very rare for me to feel excited about politicians in my home country of France. That has changed with Macron. If this has legs, it could be a turning point for Europe.”
The 2017 French presidential election was held on 23 April and 7 May 2017.
As no candidate won a majority in the first round on 23 April, a run-off was held between the top two candidates, Emmanuel Macron of En Marche! and Marine Le Pen of the National Front (FN), which Macron won by a decisive margin on 7 May.
rosie.murray-west@ft.com
