Pioneer outlines European equity themes
EM consumers, luxury and sporting goods, and advertising agencies are among the themes selected in Pioneer’s latest review of European equity and the sectors it believes are best placed to experience positive tailwinds.
The key growth trend underlying the selection of these themes is rising incomes in emerging markets.
Pioneer points to figures sourced from HSBC, suggesting growth in income per capita will be over 700% in China between 2010-2050. For India it is nearly 600%. Russia and Malaysia will experience rates over 500%. Even Hong Kong, already one of the world’s richest in per capita income, will see a gain of about 200% over the period.
The resulting benefits will be strongly felt by European companies in particular sectors, Pioneer argues. This includes Italian and Swiss luxury goods, luxury cars made in Germany, packaged foods from the likes of Nestlé and Unilever, Scotch and Cognac, as well as cosmetics from France. Selling all of this will be the likes of WPP and Publicis, the advertising agencies.
To read the research document click here: [asset_library_tag 3727,European Equity Research]