Equity investors could potentially reap rewards from the eurozone crisis, the level of uncertainty over the US path to recovery and the inflationary outlook for emerging markets according to SKAGEN funds.

Inflationary pressures in emerging markets have started to ease and more monetary and fiscal policies have been integrated, providing longer term investment opportunities for investors. Transparency is also a key issue.

Within the US banking sector, asset values are recorded effectively, are well capitalised and do not have the same exposure to the sovereign debt market as is the case with European banks.

SKAGEN global team’s portfolio manager Søren Milo Christensen said: “While the current climate is clearly a cause for concern, it is important to focus on the long-term value drivers of individual European companies, many of which are significantly undervalued; they are not solely reliant on the fortunes of the European economy and often have a global reach.

“By taking up a bottom up approach it is possible to identify companies that offer significant value creation at very reasonable prices.”

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