Valuations steer Templeton manager toward Europe

Peter Moeschter says banks such as HSBC and ING have rebounded strongly since the global financial crisis.

Sonita Horvitch 12 July, 2017 | 5:00PM

Peter Moeschter, executive vice-president, Templeton Global Equity Group, at Franklin Templeton Investments Corp., says that the European economy is playing catch-up to that of the United States, which augurs well for those companies based in Europe with exposure to that market.

For a number of years, says Moeschter, "our research has led us into European stocks in both Templeton's global and EAFE (Europe, Australasia and Far East) portfolios." A traditional value manager, Templeton combs the global equity market for bargains, with its finely honed discipline, to assess the future financial prospects for companies and not overpay for these prospects.

"The outlook for stronger economic growth within Europe and elsewhere, coupled with the likelihood of modestly increasing interest rates, has been a positive for the all-important European financial-services sector," says Moeschter. Since the 2008 global financial crisis, he says, the European banks have been building their balance sheets and improving their operations.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
HSBC Holdings PLC4.76 USD3.59
HSBC Holdings PLC ADR23.88 USD1.53
ING Groep NV ADR7.25 USD6.46

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Sonita Horvitch

Sonita Horvitch  

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