Ignore the noise, Europe is recovering, here are our pick of the best trusts


Originally published at: http://whichinvestmenttrust.com/ignore-the-noise-europe-is-recovering-here-are-our-pick-of-the-best-trusts/
The US markets are beginning to look pricey with the UK not too far behind, so what about Europe? Economic data is continuously improving and it’s one of our top picks for 2016. Europe is still at the cusp of a turnaround that will see European businesses improve profit margins, which will drive stock markets…


Henderson European Focus would be my pick of the larger cap bunch together with Montanaro for the smaller sized companies.

Jupiter European looks good too, but I think I’d settle for the Henderson one. Bennett seems like a down to earth no nonsense Jock in the video and performance looks great since he took over.


Why the Henderson trust over Jupiter @chrisbu?

I don’t have a specific European fund. probably need to do something about that.


Like I said they are both good options @khalidkhan but I’d go for the Henderson trust because since he took over performance has been better than the Jupiter one and I like the fact that he is concious of the wider economics of Europe.

The whole continent still has loads of debt mate, it’s at least a little bit comforting that someone who you’re entrusting your hard earned dosh to is taking note of what’s happening in the big wide world around him.


You can make the case for both Henderson Euro Focus and Jupiter European @chrisbu @khalidkhan though I think I would go for the Henderson one too. The reason is I think we’re in an economic environment right now that we’ve never seen before, or not for 100 years or so and having someone who has skill in identifying investment themes, informed by his macroeconomic knowledge, an opposed to just an awareness of, is worth having in my view.


So why did you not include Jupiter European on the list then if it has such a strong and impressive performance record too @whichinvest ?


We do like Jupiter European @paulo but the reason for not selecting it for this article is it is a pan European trust with over 25% of its assets in the UK.

For the purposes of this article we were looking for trusts that were well managed and that had a focus on growth in order to take advantage of the secular growth we expect in Europe for however long it lasts.

The three trusts we selected fit in to this mould, whereas with the Jupiter trust you are getting a lot of the UK too and you may already have a UK trust or two within your portfolio, and if so there is a danger of you having too much.


Ok, thank you. That makes sense.


I think the dividend growth you get with the Henderson EuroTrust is quite fantastic. 10% per year for the past five years when compounded is as good as it gets no?

The div is only 2% but with that sort of growth it’s spectacular. If I heard Tim Stevenson right in the video he said that on the original stake they purchased in Inditex, which is Zara, Massimo etc, he’s getting a 20% yield on that now, he bought it in 2001. That’s the power of growing dividends.