Fund of the week: buy European blue chips
Although a US recession is never good news for Europe, things are a lot better on the continent than they are across the Atlantic, says Rod Marsden, manager of the JO Hambro Continental European Fund.
A US recession could never be described as good news for the European economy. But with unemployment at a 25-year low, consumers still spending and earnings growth strong, things are a lot better on the continent than they are across the Atlantic, says Rod Marsden, manager of the JO Hambro Continental European Fund. "The overall consumer picture is supported by healthy savings rates and by the fact that consumption has been far less financed by asset price inflation," he tells What Investment.
That's why the Brunel University economics graduate has begun raising his fund's exposure to financial stocks with strong balance sheets and a retail focus, says the Financial Times. Recent acquisitions include Zurich Financial Services, while he has also topped up holdings in ING and AXA. In all, 70% of the fund is invested in European blue chips, which Marsden believes are better value than cyclical small caps just now.
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JO Hambro Continental European top ten holdings
