Market returns ahead are likely to be less robust, but the recent selloff has made Europe's stocks look more attractive, Allianz Global Investors' CIO for global equities told CNBC.
"After the last selloff, that's one place we'll definitely be looking to add a little bit," Lucy Macdonald, chief investment officer for global equities at the German-headquartered fund manager, told CNBC's "Asia Squawk Box." AGI manages 421 billion euros worth of assets.
The pan-European STOXX 600 index closed Monday down 0.3 percent, totting up a nearly 7 percent decline year-to-date. But Macdonald's is not an unqualified positive call.
"The politics is definitely messy and is likely to remain messy. It is Europe after all," she said.
The continent is struggling amid an upsurge of nationalism as migrants fleeing violence in the Middle East continue to land on its shores, with more than a million arriving last year. Many countries within the European Union are reintroducing border checks to stem the flow - steps that could harm the free movement of people and goods, a cornerstone of the bloc's existence.
Terrorist attacks in Paris have also heightened tensions in the region.