RT Journal Article
SR Electronic
T1 The European Equity Investment Process
JF The Journal of Investing
FD Institutional Investor Journals
SP 17
OP 23
DO 10.3905/joi.2001.319482
VO 10
IS 4
A1 Kristof Agache
YR 2001
UL https://pm-research.com/content/10/4/17.abstract
AB A survey of 32 asset managers looks at the asset management industry's approach to the European equity investment process. Most managers invest money following a large-cap blend style, and do not deviate substantially from popular benchmarks such as the MSCI Europe. The majority of the European equity managers have a bottom-up investment process, in which input for stock selection comes both from qualitative and quantitative analysis. Qualitative research mainly looks to the quality of the management of a company and its strategy; quantitative analysis usually is based on the key measures of profitability and valuation. There is no consensus as to a distinction between the function of an analyst and the function of a fund manager. Most European equity analysts operate on a sector basis. The interest rate cycle, inflation, economic growth, and corporate earnings growth are considered the driving factors in asset allocation. While there are differences among managers, investment approaches have a number of common features.