Sector report: Is active or passive investment the right Europe play?

It is fair to say that most multi-asset or fund of funds managers would agree the European equity market looks to be good value. Compared to US or UK equities, continental Europe looks cheap on a basis of p/e ratios, albeit more expensive than emerging market shares after their recent falls, and broadly in line with the Japanese market after its strong run last year. On a pure asset allocation basis, the case looks strong for advisers to increase exposure to Europe. The economic data may make for confusing reading, with unemployment still appearing around 12% across Europe. However...