European households are ready to spend, having amassed as much as EUR350b in savings during the pandemic. The continent’s economies are slated for a summer reopening and with accelerated vaccination rates, we turn positive on Europe equities in 3Q21. They have gained 12% year-to-date and we expect growth momentum to continue.
The DBS Chief Investment Office is Overweight on Europe this quarter, and EU equities constitutes 13% of our balanced portfolio. Gain exposure to EU equities; the travel, leisure, and food and beverage sectors will shine as travel resumes.
BGF European Equity Income Fund
Take a balanced income and growth approach.
The fund focuses on quality European companies with sustainable and growing dividends. Its dividend yield is c.4%.
The portfolio manager dynamically allocates to three types of stocks: High income (c.50%), Resilient (20-30%), and Structural Growth (20-30%).
Compared to peers and market, the fund is less volatile, focusing on companies with cash-heavy balance sheets and avoiding companies with a risk of dividend cuts.
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Simply click on the fund name above for direct access to our online funds investment platform.
Search for the fund name under the “Invest” tab.
We also like European Banks. Given the global backdrop, valuations remain attractive. Here is a curated list of bonds with strong underlying fundamentals in the sector, and consists of banks with significant capital buffers and good credit fundamentals.
If you are interested to find out more, please contact your RM.
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