Investment view from Old Mutual Global Investors

Kevin Lilley, Portfolio Manager, Old Mutual European Equity Fund

Unlike the QE of the Fed and Bank of England I expect the impact to be felt differently. The Fed and BOE QE led to a reduction in bond yields, leading to lower financing costs to companies and households resulting in economic stimulus. In Europe bond yields are already at historic lows therefore the main purpose of ECB QE will be to lower the euro exchange rate which will make European companies more competitive in export markets. European equities will benefit from export growth stimulus and from the translation of overseas profits back to euros.

Important information: Past performance is no guarantee of future results. The value of an investment and the income from it can fall as well as rise and investors may not get back the amount originally invested.

This communication is issued by Old Mutual Global Investors (UK) Limited (trading name Old Mutual Global Investors), which is a member of the Old Mutual Group. Old Mutual Global Investors is registered in England and Wales under number 02949554 and its registered office is 2 Lambeth Hill London EC4P 4WR. Old Mutual Global Investors is authorised and regulated by the UK Financial Conduct Authority (“FCA”) with FCA register number 171847 and  is owned by Old Mutual Plc, a public limited company limited by shares, incorporated in England and Wales under registered number 3591559. OMGI 01/15/0122