Europe may not seem like an obvious area to add money to as it includes many of the economies that have been hardest hit by the coronavirus pandemic and resulting lockdowns. But with signs that this part of the world may be through the worst of coronavirus, opportunities may have arisen to invest in quality companies at depressed valuations.
New managers with good record
Low ongoing charge
Quality companies at depressed valuations
Discount already tightened
Baillie Gifford European Growth Trust (BGEU) looks like a promising way to access such investment opportunities. The trust changed the company that manages it from Edinburgh Partners to Baillie Gifford in November last year, since when it has performed very well. Analysts at Investec say that the change in manager has “dramatically reinvigorated the fortunes of the company”, wiping out nearly a decade of material underperformance in just six months.