A WEE DRAM
CHRIS GILMOUR: BlackRock fund listing ‘snubbed by disillusioned investors’
Investors are tiring of active funds and their accompanying charges
BlackRock, one of the world’s largest fund managers, was going to bring its actively managed Greater European Investment Trust (BRGE) to the JSE in the form of a secondary listing. This would have given South African investors more rand exposure to European-listed equities without having to delve into any of their offshore allowances. At first glance, Europe probably doesn’t look like a compelling area in which to invest at present. But deeper analysis reveals key European indices and indicators are showing recovery and uptrends. We could see a broadening-out of the European recovery, emanating from improved household consumption and investment, which are well above their historical trend growth. European wage inflation is low and there is plenty of slack in capacity utilisation in the manufacturing arena.Earnings improvements, rather than valuation changes, are the main reasons for European optimism. And political risk is fading as we see true reform momentum in Europe, starting wi...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.