European Equities Undervalued?

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  • MPN
    MPN Posts: 365 Forumite
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    Sally57 wrote: »
    Wow, well I supposed I asked for that response because I really didn't explain myself very well, so thank you Bowlhead for your comments.

    In the past I have not fully committed to Europe in my portfolio (only 5% in a Vanguard tracker) and as I now have some funds available to put into my ISA, I thought I would increase my holding in Europe to include an active fund or IT. This is mainly because other markets including the US and Asia seem quite expensive at the moment but also because Europe seems undervalued IMHO. Therefore, I was really asking for views.

    The type of European fund or IT I was looking for was in the stronger economies such as the Baillie Gifford fund that MPN pointed out in his post. This is one to consider as it seems to tick the boxes but I would like to look further into some IT's before making a decision so thank you to those who suggested a couple of IT's to research..

    As I already mentioned, I also have a small Vanguard FTSE Europe ex UK tracker but feel the Baillie Gifford active fund really works well as an actively managed alternative which tends to concentrate on the more stronger/successful Northern European countries.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    European equities is generic term. I always look closely at the top 10-20 holdings in a fund. Where does the fund manager see value and why. What attracts them to a sector or particular companies. Then rationalise in my own head as to whether this is a good time to buy or add the fund to my tracking list. Waiting for the news coverage to evaporate and a better buying opportunity to arise. Currency exchange rates are worth tracking. With regards to the Eurozone I only ever buy at a rate over €1.40.
  • Sue58
    Sue58 Posts: 288 Forumite
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    Thrugelmir wrote: »
    Currency exchange rates are worth tracking. With regards to the Eurozone I only ever buy at a rate over €1.40.

    You could be waiting a very long time to buy over 1.40. At present its about 1.16 and I believe over the past couple of years it has fluctuated between 1.1 and 1.3 but not got anywhere close to 1.40 for many years.
  • Sue58
    Sue58 Posts: 288 Forumite
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    MPN wrote: »
    As I already mentioned, I also have a small Vanguard FTSE Europe ex UK tracker but feel the Baillie Gifford active fund really works well as an actively managed alternative which tends to concentrate on the more stronger/successful Northern European countries.

    I also hold a small amount in the Vanguard FTSE Europe ex UK tracker but also hold an IT Henderson European Focus Trust.

    I did consider the Baillie Gifford European OEIC fund and also the Jupiter European Opportunities IT but in the end I went for the Henderson IT.
  • redmalc
    redmalc Posts: 1,433 Forumite
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    Sue 58 i received 1.395 euros to the £ on the 29/06/2015 via this site
  • Sally57
    Sally57 Posts: 205 Forumite
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    Sue58 wrote: »
    I also hold a small amount in the Vanguard FTSE Europe ex UK tracker but also hold an IT Henderson European Focus Trust.

    I did consider the Baillie Gifford European OEIC fund and also the Jupiter European Opportunities IT but in the end I went for the Henderson IT.

    As I mentioned in my previous post I have been researching different European IT's and really like the Henderson European Focus Trust and the Manager (who also looks after the equivalent OEIC fund) has been there a long time and is very well experienced.

    I chose the Henderson IT over Fidelity European Values and the Jupiter European Opps and although there is nothing wrong with the BG OEIC fund I preferred an IT in the end.
  • EdGasketTheSecond
    EdGasketTheSecond Posts: 2,558 Forumite
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    I'm backing Britain :)
  • eskbanker
    eskbanker Posts: 31,076 Forumite
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    Sue58 wrote: »
    You could be waiting a very long time to buy over 1.40. At present its about 1.16 and I believe over the past couple of years it has fluctuated between 1.1 and 1.3 but not got anywhere close to 1.40 for many years.
    It was over 1.40 as recently as December 2015, i.e. less than 1.5 years ago!
  • MPN
    MPN Posts: 365 Forumite
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    Sally57 wrote: »
    As I mentioned in my previous post I have been researching different European IT's and really like the Henderson European Focus Trust and the Manager (who also looks after the equivalent OEIC fund) has been there a long time and is very well experienced.

    I chose the Henderson IT over Fidelity European Values and the Jupiter European Opps and although there is nothing wrong with the BG OEIC fund I preferred an IT in the end.

    I'm quite interested to know why you eventually decided on the Henderson IT instead of the Baillie Gifford European OEIC fund to compliment your existing Vanguard tracker in Europe?
  • StellaN
    StellaN Posts: 354 Forumite
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    A lot more people are now looking to invest in IT's in many regions. It's an example, if you look at the 5 year performance of the Henderson European Focus Trust and the experience of the Manager you can see why!
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