Gross domestic product (GDP) growth for the European Union increased by 0.5 per cent in the first quarter of 2017 - more than double the US rate - and manufacturing and private sector job figures suggest the region has turned. The stocks listed on this region's exchanges, meanwhile, remain among the cheapest in developed markets.
- Good long-term performance
- Low UK allocation
- High-conviction manager
- Europe relatively cheap
- Can underperform in value rallies
- Higher ongoing charge
A good way to access this area is Jupiter European Fund (GB00B5STJW84), run by Alexander Darwall, who has proven stockpicking skills and a stellar performance record. The fund has returned 208.2 per cent over 10 years, far surpassing the Investment Association (IA) Europe ex-UK sector average of 79.6 per cent and its benchmark, FTSE Europe ex-UK index, returned 81.9 per cent. Jupiter European has also beaten its sector average and benchmark index over five and three years.