European economies are on a steady recovery path, rebounding from the impact of COVID-19 in 2020 and early 2021. Despite the rise of the Delta variant, European countries continue to reduce remaining COVID restrictions, driving the rebound in economic activity and the uncertainty over the global recovery has subsided.
However, due to the fragile global outlook clear opportunities for outperformance still need to be balanced with portfolio risk diversification. Real estate performance is seeing asset-specific divergence within markets and sectors as well.
By focusing on sectors supported by secular tailwinds, we aim to ensure that stock selection and asset management are expected to drive relative returns over the shorter term.