Europe on the Verge of Economic Rebound, Investment Firm Sees Opportunity

Europe's stagnant economy has long been a concern, with the continent struggling to recover from a recent recession. However, investors are now being lured by the prospect of a rebound, with some experts predicting a remarkable turnaround in the coming years. The Universal European Opportunities Fund, a new fund from Mackenzie Financial Corp., is hoping to capitalize on this expected growth by investing in European stocks.

Key Takeaways:

• The Universal European Opportunities Fund is managed by Stephen Peak, a renowned investment expert with a 122-year-old investment firm, Henderson Administration of London.
• The fund targets three sectors: smaller companies in mature markets, emerging markets in Eastern Europe, and special situations, including privatizations and initial public offerings.
• The fund will have an annual management fee of 2 per cent, but expenses are not yet known. Investors will also pay a negotiable sales charge of up to 5 per cent.
• The fund's manager, Stephen Peak, predicts modest growth in European economies in 1994, with a potential for significant returns in the right stocks.
• The fund will invest just over half its assets in small companies, 30 per cent in special situations and privatizations, and 15 per cent in emerging markets in Eastern Europe.
• Peak's investment style is value-oriented, with a focus on unrecognized European companies with price/earnings ratios of less than 10.

Statistics:

• Market capitalization of stocks in England is 126 per cent of gross domestic product.
• Market capitalization of stocks in Poland is 12 per cent of gross domestic product.
• Market capitalization of stocks in Italy is 15 per cent of gross domestic product.
• Market capitalization of stocks in Germany is 27 per cent of gross domestic product.
• The Universal European Opportunities Fund will invest 55% of its assets in small companies.
• The fund will invest 30% of its assets in special situations and privatizations.
• The fund will invest 15% of its assets in emerging markets in Eastern Europe.

Sources:

• "Adam Corelli Special to The Globe and Mail", The Globe and Mail.