Recently, uncertainty regarding Brexit and the Dutch and French elections has put many investors off, despite the value on offer.
“People aren’t blind – it’s widely known that Europe is cheap – but until recently there had been little interest in European shares,” said Mr McQuaker.
He said political concerns were holding markets back, and if upsets in European elections weare avoided this year it could be the catalyst for improved performance.
The far-right populist candidate, Geert Wilders, failed to make headway in the Dutch election last week.
Martin Todd, manager of the Hermes European Alpha Equities fund, added: “All of last year we saw investors taking money out of European markets, the like of which we haven’t seen since the 2008 crisis. That demonstrates the sentiment towards Europe, and it pays to be greedy when others are afraid to invest.
“We’re past the danger of the European debt crisis, companies have grown earnings while cutting costs, and the MSCI Europe index is still below its pre-financial crisis peak.”