Sector report: Why Europe ex-UK may yet spring a surprise on investors

Why Europe ex-UK may yet spring a surprise on investors

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Europe may have been one of the strongest performing markets - and investor sentiment may have subsequently soared - in Q1, but investors would do well to keep a watchful eye in the coming months, writes Ken Rayner...

The Europe ex UK sector is defined by the Investment Association as funds which invest at least 80% of their assets in European equities and exclude UK securities. Europe as a sector can be used to provide diversification for a pure UK portfolio, but with the knowledge that the two regions are closely linked. Europe gives the UK investor access to a broader range of companies with an increasing emphasis on shareholder value and greater exposure to global trade cycles. The UK trades significantly with Europe, and Europe then trades with the rest of the world, particularly with the growing...

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