Generali Investments runs the GIS European Recovery Equity that aims to benefit from economic recovery in Southern Europe.
The fund managed by Francois Gobron focuses on Spanish, Italian and Portuguese and Greek stocks.
It invests in companies offering at least a 50% upside potential in terms of total return on a three to five years’ time horizon, leading to a low annual turnover ratio of 25%
The Greek exposure of the fund mainly focuses on two types of companies, the Italian asset manager tells InvestmentEurope.
“Privately owned exporters showing a strong potential if and when the local recovery occurs. Being able to export and to compete on international markets are a proof of an efficient cost base,” the company says.
Generali Investments quotes the example of Motor Oil, which is considered “well exposed to the recovery of gasoline consumption in Greece, while being able to export most of its refined products outside the country”.
Other companies the fund looks at in Greece are state-controlled with a a strong potential for cost-cutting pushed by the privatisation wave.
“We see strong progress in the environment in Greece and we could envisage in the next future to rebalance our Greek exposure towards more internal demand-driven sectors,” the manager assesses.