CLOSER FISCAL HARMONISATION COMBINED WITH A HEALTHY CORPORATE SECTOR MAKE EUROPEAN EQUITIES COMPELLING
We outperformed the market in January. Despite the recent strong performance in markets, we remain very positive on the outlook for European equities. We believe that there is way through the Euro crisis. Bold action by the ECB coupled with varying degrees of austerity across the region and the beginnings of closer regulatory and fiscal harmonisation auger well for the European project. Combined with a healthy corporate sector and valuations that we haven’t seen for decades, European equities appear very compelling. Banks now comprise almost one quarter of the fund.