European equities on the rise
Continental European equities have reported strong growth for the forth consecutive year, and are providing strong returns for investors, investment managers have claimed.
New Stars Richard Pease, manager of the New Star European Growth Fund, argued that the performance of European equities had been strong for four years, and was set to continue.
He said: A positive trend is the increased importance that corporate managers are placing on shareholder interests.
He added: Dividend growth has been beating expectations and European stocks look cheap relative to those in the US. Free cash flow volumes are at record highs and significant value opportunities remain, with earnings growth running ahead of the market rise.
The New Star European Growth Fund, which invests in ex-UK European equities, has produced returns of 79.1% since its launch in 2001.