Guess the best-performing Europe-focused fund for July
Of the 3 contenders, my vote goes to $Janus Henderson Pan European Property Equities Fund(LU1316543088.MF$
About the fund:
At least 75% of its funds are vested in the stocks and equity-related securities of REITs in Europe and the net performance has consistently outperformed its benchmark of FTSE EPRA Nareit Developed Europe Capped Index. The largest geographic exposure of the fund is UK (36.5%) followed by Germany (18.3%) . The top 2 sub-sectors are Real Estate Development and Holding (35.9%) and Industrial REITS (11.3%).
Outlook:
The price of REITs has been depressed for a few years due to the high interest rate environment. UK REITs are trading at around 24-25% discount to their book value which represents a lot of room for recovery. Recently the UK stock market has been attracting renewed interest from foreign investors as interest rate cuts by the Bank of England seem likely to happen before the US. Lower interest rates will be positive for REITs and stocks. While bond funds also benefit from a cut in interest rates, the return is typically less than equity funds as bond funds are less volatile.
Reason for my vote:
Compared to the $BGF United Kingdom Fund(LU0171293334.MF$ , the REIT fund is more volatile and risky (higher standard deviation). The higher the risk, the higher the possible return. Its performance was negative for June 2024 but it seems to be rebounding this month. If this can be sustained, I believe it can beat $BGF United Kingdom Fund(LU0171293334.MF$ in terms of the returns for July.
Disclaimer: The above is just my personal non-professional opinion. It is not financial advice and is not a recommendation to buy and/or sell. Please do your due diligence and consult a financial advisor before entering into any investment.
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Benji_123 : Power lah Bro!