Three European small cap stocks with a big future

published 3 January 2020

Each week, a professional investor tells us where he'd put hismoney. This week: Francesco Conte of the JPMorgan European Smaller Companies Trust picks three winners.

The global market backdrop appears challenging, but we are keen on European smaller companies owing to a positive outlook for earnings growth combined with market valuations close to long-term averages. The JPMorgan European Smaller Companies Trust seeks out dynamic companies with strong growth prospects that are independent of the economic cycle. Many of these tap into exciting structural growth themes such as environmentalism, ageing populations, wellness and digitalisation.

High importance is placed on environmental, social and governance (ESG) issues. Well governed companies that respect the environment and nurture their employees as well as wider society are more likely to generate sustainable earnings in an ever more competitive global environment. Here are three stocks that tick these boxes:

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