fund manager views

Stunting investment in UK

Unwinding of deflation risks more worrying

There were several credit rating changes in February that were significant for emerging markets (EM).

Since the end of 2007, European equities have underperformed US equities by 63% on a real total return basis (in local currency terms).

'Inflation scare'

Political uncertainty an issue

Market's reputation is being rebuilt

European equity markets remain attractive to us. The combination of a solid macroeconomic backdrop outside the region and a strong recovery domestically has helped propel earnings higher.

Investors must pay attention

Offer improving cashflow and dividend