A combination of continued corporate activity, structural change and attractive valuations make the European small cap sector an attractive long-term proposition, according to Barings' Nick Williams.
Williams is manager of the Europe Select trust, which is top quartile over one and three years, with a three-year return of 41pc (bid-to-bid, according to Lipper, 30.07.08). He explained that European equity valuations - both small and large cap - are relatively cheap compared with bonds and historic averages. He added that, despite some profit warnings, selected companies, particularly in the healthcare and industrial sectors, will continue to see strong growth. He said: "Low share prices are also providing support in some areas, with some companies being taken private by their major ...
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