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Martin Currie European Equity Income Fund Opens To Investors

Eliane Chavagnon London 5 March 2012

Martin Currie European Equity Income Fund Opens To Investors

UK-listed equity fund manager Martin Currie has unveiled its European Equity Income Fund to investors, under the management of income manager Ross Watson.

The fund, which is benchmarked against the MSCI Europe ex-UK index, seeks to provide an income yield higher than that of the index, as well as the potential for capital growth, the firm said. 

As a multi-cap portfolio comprised of 40 to 60 stocks, the fund invests primarily in equities of companies listed in continental Europe. 

Watson, a senior investment director for Martin Currie, has over 20 years of experience in running equity-income portfolios and currently manages over £300 million (about $475.9 million) in a range of income strategies for institutional clients.

“Europe remains an area rich in opportunities for stock-picking investors. Valuations are currently pricing in much of the negative news flow and are reasonably attractive,” said Watson. “At a sector level, the fund is overweight in consumer stocks, thanks largely to two auto companies: Daimler and Continental.”

Watson added that the portfolio is also overweight the materials sector, and expects dividend growth of 7 per cent from the portfolio over the next year.  

However, some sectors in Europe “remain under pressure,” he said. “In telecommunications, for example, yields may be high but growth is challenged – as are future dividend levels. I continue to be underweight in the European financial sector, especially the banks.”

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