Sector report: Is active or passive investment the right Europe play?

They say all roads lead to Rome, but do you take an active or passive approach?

clock • 4 min read

There is a strong case behind increasing exposure to the Europe ex UK sector, but how should advisers go about it? Patrick Murphy, director at PureResearch Group, takes a look.

It is fair to say that most multi-asset or fund of funds managers would agree the European equity market looks to be good value. Compared to US or UK equities, continental Europe looks cheap on a basis of p/e ratios, albeit more expensive than emerging market shares after their recent falls, and broadly in line with the Japanese market after its strong run last year. On a pure asset allocation basis, the case looks strong for advisers to increase exposure to Europe. The economic data may make for confusing reading, with unemployment still appearing around 12% across Europe. However...

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