A fundamentals-based, long-term stock-picking approach across a range of strategies investing in European equities.
European equities have been out of favour for a long time and yet they offer access to many high quality, cash generative and diverse businesses at attractive valuations. There has been a major macroeconomic shift in Europe in 2025 with both fiscal and monetary policy stimulus now at work and we expect the equity markets to benefit over the long-term. Furthermore, European equities offer excellent portfolio diversification.
European equities are shares of companies that are publicly listed on stock exchanges across the region. Investing in European equities allows investors to develop exposure to the European economy. They offer a potential for differentiation of risk and valuation opportunities. At Invesco this includes a broad range of countries.
The European market offers a unique opportunity to invest in some of the world’s largest and most innovative markets. They hold strong intra-regional trading, competition, and offer differentiated risks and returns compared to global counterparts..
At Invesco, we prefer a ‘quality transition’ (good companies to great companies) approach over a compounders (great companies that stay great) approach and over a macro approach (trying to time the market). This is because our analysis suggests that ‘quality transition’ help generate greater returns over the long term.
We continuously analyse the markets for valuations that we believe do not reflect the future prospects of the underlying companies. A key component of this research includes three-year IRR analysis for every portfolio holding and large index stock. We have no preconceived style bias towards stocks, sectors or countries, rather we look for the best investments at any point in time.
Equities: A growing case for diversification
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