Four different ways to invest in Europe
This article first appeared on professionaladviser.com on 2nd September 2022 “When has Europe ever...
26 July 2018 marks six years since Mario Draghi, president of the European Central Bank (ECB), made a promise to “do whatever it takes”. In the midst of the European sovereign debt crisis, he made a pact to preserve the euro and thereby keep the eurozone intact.
Investors who trusted him to be true to his word have been rewarded: the MSCI Europe ex UK is up 111.19%* since the speech, compared with returns of just 79.64%* from the FTSE All Share.
Draghi is now ‘undoing’ it and has started to taper his bond-buying programme: the current €30bn of assets bought each month will halve to €15bn in September and end completely by December.
So what does the future hold? Darius McDermott, managing director of FundCalibre looks at the pros and cons:
The best performing Elite Rated European equity fund over the six-year period is T. Rowe Price European Smaller Companies Equity, which returned 205.58%*. The fund is actually pan-European and invests around 30% in the UK. It is currently overweight in the technology, consumer discretionary and healthcare sectors.
*Source: FE Analytics, total returns in sterling, 26 July 2012 to 18 July 2018