The FSA Spy market buzz – 24 March 2023
Bitcoin rolling futures, new fund pricing models gather pace, greenbleaching, sustainable bonds (not), thematic investing at the top; consultant jokes, Munger’s wisdom and much more.
European equities continue to lag its global peers, with the MSCI AC Europe Index returning -11.03% on a year-to-date basis versus the MSCI ACWI’s performance of -1.12%, according to data from FE Fundinfo.
On a three-year cumulative basis, the European index is also in negative territory (-2.35%), while global peers are up 21.49%.
That said, a number of investment professionals believe that there are opportunities in European stocks. For example, Luca Paolini, chief strategist at Pictet Asset Management, said in a note that European equities look attractive as they are relatively cheaper when compared to the US market.
Standard Chartered Private Bank is also positive on European stocks, labelling them as a “most preferred” asset class, according to its weekly market view report.
However, the bank noted that Covid-19 cases continue to go up in the region. “The second pandemic wave, if sustained into Q4, raises the risk of more economic restrictions,” it said.
Against this backdrop, FSA asked Samuel Meakin, associate director at Morningstar, to compare two European equity products: The Eastspring Pan European Fund and the Jupiter European Growth Fund.
|Size (Ucits / US-domiciled)||$48.1m||€1.3bn ($1.52bn)|
|Inception (Ucits / US-domiciled)||2005||2001|
|Manager||John William Olsen, Mike Oliveros||Mark Heslop, Mark Nichols|
|Three-year cumulative return||-3.37%||22.30%|
|Three-year annualised return||-0.01%||8.57|
|Three-year annualised alpha||-0.05||8.89|
|Three-year annualised volatility||20.96||19.62|
|Morningstar analyst rating||Silver||Neutral|
|Morningstar star rating||***||****|
|FE Crown fund rating||***||*****|
Part of Mark Allen.