This manager fancies European luxury goods

Lasting, innovative and quality goods are concentrated among these brands, and with a growing affluent market in China, RBC's Dominic Wallington sees a significant upside

Michael Ryval 4 July, 2019 | 2:20AM

Luxury goods

The world of luxury goods is dominated by European firms such as Hermes, L’Oreal and Cartier. But investors tend to overlook this fact, argues Dominic Wallington, lead manager of four-star $6.8 billion RBC European Equity Fund F, and that much of the sector’s growth is driven by rising affluence in markets such as China.

 “Based on rankings done by Interbrand, 17 of the top 100 brands globally are luxury brands, and 15 of those 17 are European,” says Wallington, head of European equity at London, England-based RBC Global Asset Management. New York-based Interbrand conducts brand studies in many developed and developing countries as well as on a global basis. “Ninety-two percent of the luxury brand value is contained within European companies.”

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
RBC European Equity Fund F28.25 CAD0.04

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Michael Ryval  

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