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UAE Investors To Benefit From European Equities

April 2017

April 10, 2017 | 15:30 | Dubai

Private Wealth in the UAE expected to reach $1 trillion by 2020 according to BCG’s Private Wealth Report 2016, the UAE remains a key market for J.P. Morgan’s Private Banking business in MENA.

Over the last few years JP Morgan Private Bank has seen that its clients achieve local exposure through their own businesses and utilise J.P. Morgan’s investment infrastructure to gain access to opportunities in financial markets outside of the UAE.

More and more wealthy families are looking to diversify their wealth over the next few years, clients are very aware of the benefits from building a globally diversified portfolio with a focus on generating both income and superior risk adjusted returns in portfolios.

Latest EMEA Perspectives report issued by JPMPB end of March highlights the potential for local investors in European equities. According to the report, Europe stands out as a value market that generates an attractive dividend yield. European equities are trading at an average price-to-book ratio of just 1.7x. This compares with 2x for global equities and represents a discount that is twice the historical average of 10%. At the same time, European equities yield around 4%, a full percentage point ahead of their global counterparts.

“Politics aside, the economic outlook for Europe is improving, which should support a long-awaited pickup in earnings growth.”

 

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