UBS Wealth backs Europe over EMs for value

UBS Wealth Management's research team is finding better value opportunities in Europe than in emerging markets, pointing to the latter's political instability and lack of earnings momentum.

Caroline Winckles (pictured), deputy head of chief investment office research, UK, said the weakening of the euro versus the US dollar can be an added benefit for eurozone earnings, two-thirds of which are generated outside Europe. "We are looking for products and mangers that are not ‘benchmark huggers' and are willing to exploit the cyclical outlook in Europe," she said. Nick Perryman, head of investment products and services, named BlackRock European Dynamic and GAM Star Continental European Equity as two key holdings in the wealth managers' portfolios. "BlackRock's fund focuses...