Europe is at the heart of our convictions

Europe’s upbeat economic and political environment

Europe’s upbeat economic and political environment


The European recovery has been underpinning the continent’s markets since the beginning of 2017 and it continues to do so thanks to a boost from the recent French presidential election

 

The eurozone's recent reduction in political risk and an acceleration in the economic recovery have created a favourable environment for European assets. What effect has that had on our investment strategies? Benefit from this environment by discovering some of our investment convictions:

Edmond de Rothschild Fund
Bond Allocation


 
 

Does the low interest rate environment signal the end of bond yields?

  • Current bond yields require flexible and active investing
  • Europe has some interesting opportunities
  • An active duration management to limit the impact of yield moves

Edmond de Rothschild
Signatures Financial Bonds


 
 

Why does financial debt offer opportunities today?

  • European regulation means banks and insurance companies are better capitalised
  • An increase in rates would be good for bank profitability
  • Political risk is largely behind us
  • Valuations still offer opportunities

Edmond de Rothschild Fund
Income Europe


 
 

Has EdRF Income Europe been able to generate regular income?

  • The fund targets regular income but seeks to keep volatility under control
  • The equity bucket focuses on companies with attractive dividend payouts
  • The bond sleeve comprises corporate bonds and subordinated financial debt

Edmond de Rothschild
Tricolore Rendement


 
 

Are French equities the new Eldorado now that political risk has abated?

  • France is expected to embark on a serious reform package
  • Growth is recovering in the eurozone
  • Valuations are still attractive

Edmond de Rothschild
Europe MidCaps


 
 

How can midcap stocks tap into the recovery in European growth?

  • The economic environment is favourable in Europe
  • Midcaps are more domestically focused so are benefiting more directly from this growth environment
  • Close proximity with senior executives in portfolio companies is essential

Edmond de Rothschild Fund
Europe Synergy


 
 

Is renewed momentum on the M&A market a source of performance for European equities?

  • The economic environment and the outlook for earnings are both positive
  • Today’s strong M&A deal flow is expected to last
  • Our strategy owned positions in the two largest deals so far this year
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