By a small majority, advisers are planning to add to their European equity exposure in the year ahead, according to the latest FTAdviser poll.
The poll showed that, by a majority of 58 per cent to 41 per cent, advisers intend to increase their exposure to European equities in the year ahead.
The Euro Stoxx Index of European shares is down this year to date, from a starting point of 3,793 points, to the current level of 3,245.
Over the past five years the index has fallen from 3,637 to the current level.
And flows data has been similarly negative, with investors withdrawing £451m from funds within the sector in May, compared with a net inflow of £253m into the IA UK All Companies sector in the same time period.
Tommy Faber, equity fund manager at Waverton Investment Management said European equities have generally been out of favour with global investors in recent years, as the region is viewed as being full of companies that lack technological expertise and a desire to maximise shareholder value.
But he said while the region as a whole may have such issues, there are always individual companies within Europe that are a good investment.
david.thorpe@ft.com
