Europe’s new quality growth opportunities

In a more volatile, capital-intensive Europe, new sources of quality are emerging. The focus is on businesses with high physical barriers to entry — cost, regulation, networks, infrastructure, and engineering complexity — combined with a low risk of technological disruption. As Europe shifts from an economy of ideas to one of tangible assets, opportunities are broadening across industrials and infrastructure. Portfolio managers at Columbia Threadneedle, for example, are increasing exposure to utilities such as Iberdrola and Engie, alongside pharmaceuticals including AstraZeneca, and select...