Who wins Europe?

By Juliet Schooling Latter on 12 May 2026 in Europe

It’s the time of year when music lovers hide behind their sofas. The annual Eurovision Song Contest showcases some of the region’s most talented – and questionable – singers.

The madcap evening, famed for wacky songs, extraordinary costumes and bizarre performances, takes place in Vienna on Saturday, 16th May. It’s the 70th running of the event, and already proving controversial with Iceland, Ireland, the Netherlands, Slovenia and Spain boycotting the contest over Israel’s involvement.

Early betting odds suggest that Finland, Denmark and France are the main contenders, while Greece, Italy and Austria are viewed as underdogs. The UK’s entrant is electronic artist and YouTuber Look Mum No Computer, real name Sam Battle, performing ‘Eins, Zwei, Drei’.

So, which countries have won the votes of five leading European fund managers, and how do they view opportunities in the region?

Comgest Growth Europe ex-UK

This high-conviction fund invests in quality, long-term growth companies headquartered – or principally operating – in any European country, except the UK. France has the biggest country weight of 31%. This includes significant holdings in Air Liquide, the supplier of gases, and cosmetics giant L’Oréal*.

The fund’s co-managers, Franz Weis, James Hanford and Denis Callioni, increased exposure to tech platform Adyen and music pioneer Spotify as valuations became attractive on share price weakness*. In an update, they warned that cyclical headwinds were likely to emerge throughout the year, as the oil price shock trickles through the economy*. While this fund will likely struggle when the quality growth style is out of favour, we believe it can continue to deliver over the long term.

Janus Henderson European Focus

Spain, the Netherlands and Germany are the top three countries represented in this fund*, which aims to provide long-term capital growth and income. The fund, co-managed by Marc Schartz and Robert Schramm-Fuchs, usually has up to 40 stocks but is still pretty well diversified. We like how the team is structured to focus on the areas where it can add the most value and invest early enough to maximise the investment opportunity.

Its largest holdings currently include ASML, the Dutch lithography machine manufacturer, and Novartis, the Swiss-based pharmaceutical giant*. Defence exposure has been increased with the purchase of Thales, the French aerospace group, according to the managers’ recent update**.

BlackRock Continental European Income

France, Switzerland and Sweden have the largest country weightings in this portfolio*, which looks to identify undervalued European companies. Manager Brian Hall favours stocks that offer reliable, sustainable dividends; potential dividend growth; and protection against inflation, with a lower level of risk. Its investment process focuses on fundamental company analysis, with a strong awareness of macroeconomic trends. It takes a flexible approach to company size and country exposure.

The fund’s largest individual holdings include Engie SA, a French multinational electric utility company, and Roche Holding, the Swiss healthcare company. As far as sectors are concerned, industrials, financials and utilities top the list, followed by healthcare, telecommunications and consumer discretionary names*.

We regard this as an impressive European fund that pays an above-average yield and has below-average volatility.

Fidelity European Trust

We see this as a core European equity portfolio. It has a disciplined and cautious long-term focus, with the team favouring companies that can sustainably grow their dividends. While France has the largest country weighting of 30%, the fund also has 20.5% exposure to Switzerland and 15% in Germany. Others represented include the Netherlands, Spain and Finland*.

Marcel Stotzel recently highlighted the attractiveness of European banks on our Investing on the go podcast:“We still think that’s got more to run because if economies do well, people will take out more loans.” The fund’s exposure to this sector includes a holding in the French bank BNP Paribas*, headquartered in Paris.

Liontrust European Dynamic

Switzerland and the Netherlands have the joint largest country allocations of 15% each in this portfolio, followed by Spain with a 12% weighting*. The fund, which is run by James Inglis-Jones and Samantha Gleave, also has exposure to France, Germany, Italy, Ireland and Finland. The co-managers of the 30-40 stock portfolio believe cash flow is the single most important factor in shareholder return. It benefits from a flexible investment style, with the ability to rotate towards value or growth depending on where the most opportunities can be found.

In a recent update, they noted how their top performers included Norwegian energy company Equinor and TotalEnergies of France, both of which benefitted from the oil price hike. Conversely, Ryanair was impacted by rising cost pressures and operational uncertainty within the airline sector**.

*Source: fund factsheet, 31 March 2026
**Source: monthly fund commentary, 31 March 2026