Trustnet Magazine Issue 12 November 2015 | Page 18

INVESTMENT STRATEGY

EUROPE

Expertly
navigating the UK

Fund manager industry experience: Rosemary Banyard: 36 years, Andrew Brough: 28 years, Sue Noffke: 25 years and Philip Matthews: 16 years. The most up to date
key features can be viewed on the UK Investor website via www.schroders.co.uk/investor. Issued in September 2015 by Schroder Unit Trusts Limited, 31 Gresham Street,
London EC2V 7QA. Registered No: 4191730 England. Authorised and regulated by the Financial Conduct Authority. UK09735

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PERFORMANCE OF FUNDS OVER 1YR
35%

Jupiter - European (20.80%)

30%

Man GLG - Continental European Growth (31.01%)

25%
20%
15%
10%
5%
0%
Oct

Sep

Aug

Jul

-5%
Jun

This economic rebound has
translated into decent investment
returns, too. Over the past 12
months, the average IA Europe
(ex UK) fund has delivered a total
return of 8.49 per cent, ahead of
the 6.86 per cent and 4.5 per cent
for the IA UK All Companies and
Global sectors, respectively.
Among the best-performing
funds over the period are Man
GLG Continental European
Growth, which is up 31.01 per
cent, and Jupiter European,
which is up by 20.8 per cent.
Gavin Haynes, managing
director of Whitechurch
Securities, thinks Europe is
currently “one of the brightest
spots in the developed world”.

enthusiastic investors should
ensure they exercise some
caution.
He points out that despite the
recent volatility, markets have
already risen significantly and
shares have become much more
expensive as a result – in the past
three years alone, the average
European fund has risen by 42
per cent.
“Company earnings need to
improve to justify these higher
valuations,” he said. “There is
also absolutely no guarantee that
the actions of the ECB will prove
successful. The jury is still out
and the recent woes in Greece
demonstrate just how vulnerable
the eurozone could be to further
economic or political shocks.”
European companies also
generate about 50 per cent
of their overall revenue from
outside of the eurozone, so while
the fortunes of its economies are
important, so too are those on
which it relies throughout the
rest of the world.

May

Investing for
your world

GREEN SHOOTS

Apr

Whether your focus is growth, income or a combination,
our deep knowledge of the UK can help you chart the
right course. Talk to your financial adviser or visit
schroders.co.uk/its

Mar

As with any investment, investment trusts carry risk. The
value of an investment trust will rise and fall in value, and
you may not get back what you put in. As these trusts
concentrate on only the UK, they can carry more risks
than those trusts that are spread across a number
of regions.

“Powered by quantitative
easing, we are starting to see
the green shoots of recovery,”
he said. “There are clear signs of
upward momentum, particularly
from the consumer, where
sentiment is at its highest point
since 2011.”
Chase de Vere’s Patrick
Connolly believes European
shares should have a place in
virtually every investment
portfolio, given the continent’s
place in the global economic
engine. However, he adds that

Feb

There are three trusts in the Schroders UK range:
Schroder UK Mid Cap Fund plc, investing in
medium-sized companies; Schroder Income Growth
Fund plc, aiming to provi