UK equity income and continental European strategies are finding themselves back in focus, attracting investors who appear increasingly willing to look beyond long-favoured regions and sectors.
The change comes after a prolonged period when global mandates and US-focused strategies dominated attention. The sharp tilt towards the UK is particularly striking given how long the market has been out of favour.
Europe is experiencing a similar reappraisal. Political commitment to higher defence and infrastructure spending across the region has bolstered earnings expectations for a swathe of industries. Markets across the continent have rallied in response, and investors appear to be probing more deeply into selective opportunities there.
In an environment where the US no longer feels like the only engine of returns, UK and European trusts are providing the combination of income, valuation support and cyclical exposure that investors are increasingly seeking.
Global Opportunities Trust plc LON:GOT) invests globally in undervalued asset classes without reference to the composition of any stock market index.
