How Is Brexit Impacting European Investment Strategies?

TL;DR

Brexit and the pandemic have created challenges for investment decisions in Europe, but European small companies are poised for growth due to links with global GDP recovery and sustainability trends. Investors should be cautious about potential valuation concerns and ongoing pandemic risks, while also recognizing the unearth opportunities in under-researched small-cap markets.

Transcript

hello today i'm joined by ollie beckett full manager of the tr european growth trust brexit has been a headwind for a number of years but has more recently been largely overshadowed by the pandemic to what extent has it and does it still factor into your investment decisions and in what way does it come up when you speak with management of the comp... Read More

Key Insights

• 🧑‍🏭 European growth trusts factor Brexit and pandemic impacts into investment decisions.
• 🌐 Small European companies offer growth potential tied to global GDP recovery and sustainability trends.
• ✳️ Valuation concerns exist in the market, with potential risks related to the pandemic and inflation.
• 👨‍🔬 Under-researched opportunities in European small companies create investment potential.
• 🇫🇷 Turnaround stories like Nexans and Audience in France showcase opportunities for growth.
• 🇪🇺 Personal investments in TR European Growth Trust align with investor interests.
• 🏤 Sustainability trends drive investments in European smaller companies.

Questions & Answers

Q: How does Brexit and the pandemic impact investment decisions in European growth trusts?

Brexit and pandemic factors influence decisions, affecting supply chains, valuations, and risk considerations for European investments.

Q: What potential does investing in European smaller companies offer?

European small companies offer growth potential tied to global GDP recovery and sustainability trends, providing exposure to emerging market opportunities.

Q: What valuation concerns and pandemic risks are associated with investing in Europe?

Valuation concerns arise from stretched multiples in growth names and pandemic-related risks, such as supply chain disruptions and the potential for resurgence in Covid-19 variants.

Q: Why are European small companies under-researched and under-owned in comparison to larger counterparts?

European small companies lack research coverage due to focus on larger cap stocks, creating opportunities for focused investors in under-researched markets.

Summary & Key Takeaways

• Brexit and pandemic factors influence investment decisions in European growth trusts.

• European smaller companies show potential for growth, tied to global GDP recovery and sustainability trends.

• Valuation concerns and pandemic risks affect European investments, along with under-researched opportunities in small companies.