Duncan Owen, Head of Schroder Real Estate Investment Management Limited, Fund Manager of Schroder Real Estate Investment Trust and Schroder European Real Estate Investment Trust sees demand for European commercial real estate underpinned by an increase in technology and professional service jobs. European commercial real estate markets have performed strongly. Prices in Europe’s major cities have risen on average by 40-50% since 2013 (source RCA) and except in southern Europe, they are now 10-20% above their previous peak before the global financial crisis (GFC).
- Japan has continued to see a gradual improvement in domestic economic conditions - Corporate profits responding positively to the improved domestic backdrop - Japan’s economy is gradually improving under a stable domestic policy environment, but external risks and trade friction could continue to affect investor sentiment in 2019.
Robin Parbrook and King Fuei Lee, Co-Fund Managers, Schroder Asian Total Return Investment plc advocate a cautious approach to Asian equity markets as China increasingly finds itself in an economic quagmire.
After the disappointment of 2018, Chief Executive Peter Harrison rounds up the factors our fund managers think could lead to a brighter year ahead.
We believe that US earnings growth will slow in 2019, but we think the more challenging corporate environment may provide a rich backdrop for stockpickers.
Valuations have become more attractive and fundamentals are reasonably positive. But a period of transition looms, with central bank support being withdrawn and government bonds now offering a more compelling alternative than they have in many years.