Ever since the Global Financial Crisis, global economic growth has been sluggish. Europe, burdened by fiscal austerity and the sovereign debt crisis, has been a notable drag in particular. However, we are now seeing a significant shift coming through towards the meaningful use of fiscal tools. The range and size of stimulus packages, both at national and EU level, have gone well beyond what any of us could have envisaged and are likely to have a significant impact on the investment landscape now and in the future.
Europe as an asset class works when we get global economic recovery, and particularly European economic recovery. There are some key themes emerging that should drive structural change and growth across Europe for many years to come: social inequality, climate change and digitalisation.
We discuss these themes in detail in the articles below.
Inequality, along with climate change, is now at the very top of the political agenda. The narrative has moved towards redistribution. This will likely impact investment decisions for the years ahead.
Europe has grand ambitions and a once in a generational opportunity to steal a march on other continents through early adoption of climate change regulation and technology.
The Digitalisation of Everything for European corporates is about much more than just having a website or adopting a cloud strategy, it’s about sustainability and long-term value creation.
Ever since the Global Financial Crisis, global economic growth has been sluggish. Europe, burdened by fiscal austerity and the sovereign debt crisis, has been a notable drag in particular. However, as vaccines are rolled out and economies gradually re-open, we expect European/global economic activity to recover rapidly.
Our focus as active fund managers is on finding mispriced stocks. We are open to buying companies whose qualities and future potential are not properly reflected in their share prices. Equally, we look for companies whose willingness and efforts to change have yet to be recognised by the market. The same principles apply to how we see ESG.
