Many investors have little to talk about beyond the latest artificial intelligence play. However, as they fret about chips and algorithms, they risk missing out on strong returns from less glamorous industries.
- History of strong returns
- Prioritises close analysis over macro backdrop
- Chance to diversify away from 'Granola' stocks
- Structural tailwinds
- Quirky portfolio
- Potentially volatile
So it seems with Europe. The so-called 'Granola' stocks are turning heads and European indices have been hitting new highs this year, but domestic investors are generally shunning funds focused on the region. Although the FTSE World Europe ex UK index made a sterling total return of nearly 16 per cent in 2023, UK retail investors yanked nearly £3bn from European equity funds on a net basis in the same period, according to the trade body for investment managers. In the investment trust space, every single name in the Europe section of the Association of Investment Companies trades on a discount to net asset value (NAV).