Pan-European stocks, more procyclical and with more attractive valuations

However, growth across the private sector slowed at the end of the third quarter, according to preliminary figures. The Composite PMI of the Eurozone fell from 59.0 to 56.1 points, with slower growth in the manufacturing and services sectors. In September, the Eurozone services PMI fell from 59.0 to 56.3 points, with the manufacturing PMI declining from 61.4 to 58.7 points.

Both Germany and France posted slower growth, with Germany’s manufacturing PMI falling from 62.6 to 58.5 points. The EuroStoxx600 and the DAX30 fell by 3.19 and 3.63% respectively, with the CAC40 ending the month with a drop of 2.40%.

The Banco Central European (ECB) announced a reduction in the pace of its asset purchases, but unlike the Federal Reserve (Fed), wanted to emphasize that this is not going to be the beginning of a process of reduction of purchases. As the Fed and the Bank of england (BoE) embark on a path to higher interest rates, the ECB is likely to lag behind.

The other key news from the eurozone at the end of the quarter was the result of the German elections. Although the result means that the formation of a government and the appointment of a new chancellor to replace Angela Merkel It could take a while, the result seems to indicate that the change will not have a significant impact on the performance of European equities.

We therefore have an environment of low valuations and somewhat slower growth, in an environment of continuity in the ECB’s monetary policies and a perspective of political and economic stability after the German elections. A scenario that, compared to the US, offers greater stability and greater potential for the coming months.

The funds have been selected from the VDOS category of International Equities Europe which, investing in markets in European countries, obtain the VDOS five-star rating and require a minimum contribution of up to 6,000 euros. Of this group of funds, the most profitable in the year is the class A2 in euros of BLACKROCK EUROPEAN OPPORTUNITIES EXTENSION revaluing 27.37% and 37.58% at one year, with a volatility data of 18.69%.

You seek to maximize total returns through the use of an extension strategy, which means that in addition to having up to 100% of your assets exposed to common stocks through synthetic long or long positions, you can also enter synthetic short positions to achieve Additional investment exposure and earnings from those synthetic short positions are used to purchase additional synthetic long positions (broadly in the same proportion as the short positions you own).

Invest at least 50% in small and medium capitalization companies, managing the exchange rate flexibly. Its largest positions correspond to DSV PANALPINA A / S (6.77%) ROYAL UNIBREW A / S (6,11%) LONZA GROUP AG (5,50%) NOVO NORDISK A/S (5,30%) y TELEPERFORMANCE (3,59%).

The minimum investment required to subscribe to class A2 in euros of this fund is 5,000 dollars (approximately 4,312 euros) applying to its participants a fixed commission of 1.50% and a deposit of 0.40%. In addition, a 20% variable fee on positive results between the fund and its benchmark, the S&P Europe BMI.

With a focus on the Nordic region, NORDEA 1-NORDIC IDEAS EQUITY FUND It has gained 23.29% in profitability since January 1 in its BC class in euros and 34.78% in the last annual period, with a controlled volatility in this last period of 13.59% that places it among the best in their category, in the fifth quintile, for this concept.

Invests mainly in equities of Nordic companies. By actively managing the portfolio, the management team selects companies that appear to offer the best growth prospects and investment characteristics. According to our database, it also integrates the ESG factors (Environmental, Social and Governance) in its investment process, applying Exclusion and Integration strategies. Among the largest positions in its portfolio are shares of Novo Nordisk A / S (9.56%) Tryg A / S (6.82%) Sampo plc (6%) Evolution AB (publ) (5.92%) and Swedish Match AB (5.20%). Its participants bear a fixed commission of 1.10 percent.

Class B in euros from BELLEVUE FUNDS (LUX) – BB ENTREPRENEUR SWITZERLAND is another of the most profitable funds in the year in this category, appreciating 20.33%, while in one year its profitability is 32.72%, with a controlled volatility of 13.26% which, as in the previous one, places it in the fifth quintile.

The shares in its portfolio are carefully chosen from among owner-managed Swiss companies based on a number of parameters: 1) One or more shareholders have significant stakes (at least 20 percent) and have a decisive influence on corporate policy and 2) They are listed on an established Stock Exchange. Their largest holdings include shares in Logitech International SA (4.19%) Chocoladefabriken Lindt & Spruengli AG (3.75%) Swissquote Group Holding SA (3.27%) Kuehne und Nagel International AG (3.21%) and Zur Rose Group AG (3.20%). A fixed commission of 1.60% and a deposit of 0.40% apply.

While the United States is a long-term bet, it is also a more expensive market, with a near-record cycle-adjusted PER premium compared to Europe. Assuming that GDP growth will slow but remain above potential until 2022, it would make sense that in the next 12 months the more pro-cyclical and higher relative value market of the two would offer greater opportunities.

Disclaimer: If you need to update/edit/remove this news or article then please contact our support team Learn more

Leave a Reply