Matt Siddle, UK-based portfolio manager of Fidelity Europe Fund, discusses the implications of Europe's economic reopening and the diversification opportunities that exposure to Europe can provide to investors' portfolios. Europe has been more restrictive than the U.S. and Canada. Matt notes that the lockdowns have had a differential impact on the goods-producing part of the economy and the service parts of the economy causing a big divergence. He says he is interested in key names such as airlines and cruise ships; however, fashion retailers have lagged in the reopening rally. He also notes he is cautious of European banks broadly because of interest rates. Matt says a combination of good businesses with valuations that are more attractive is the core to the portfolio. Additionally, Matt shares his thoughts on the inflation debate and the extent to which ESG provides an alpha advantage.
Recorded on July 9, 2021.