Dividend-paying stocks in Europe can be a steady income stream, but they come with caveats and cautions, according to Will James, UK-based investment director for European equities at Aberdeen Standard Investments.
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Dividend-paying stocks in Europe can be a steady income stream, but they come with caveats and cautions, according to Will James, UK-based investment director for European equities at Aberdeen Standard Investments.
Asset allocators in Hong Kong and Singapore tell FSA they are planning to increase allocation to European equities and data shows that capital flows into European equity funds have been increasing.
Small cap equities provide better risk-adjusted returns than large caps, despite higher volatility, said Andrew Paisley, manager of Standard Life Investment’s European Smaller Companies Fund.
The recent oil price retreat is just noise, and large cap energy company valuations are at historical lows, according to Toby Gibb, Fidelity International’s investment director of European equities.
A key risk is removed, revealing relatively cheap assets in Europe and Asia against a background of improved investor sentiment, industry sources told FSA.
FSA compares two European equity funds: the Eastspring Investments Pan European Fund and the JOHCM Continental European Fund.
European equities in cyclical sectors are far more attractive than defensive stocks, according to Klaus Teloeken, Allianz Global Investors’ managing director and chief investment officer for systematic equities.
European equity funds bore the brunt of a fall in investor confidence last year and recorded their worse annual outflows since 2008, new data from Morningstar has revealed.
FSA compares two European equity funds: the Fidelity European Fund and MFS Meridian European Research Fund.
Selling European equities and buying global emerging market stocks is developing into the great trend of 2016.
Part of the Mark Allen Group.