3 New European Equity Funds for Future Investment Ideas

Newly launched funds have yet not had time to prove the manager’s strategy works - but keep an eye on these new European equity funds for potential future investment

Muna Abu-Habsa 29 April, 2016 | 11:54AM
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January’s financial market turbulence turned into a veritable storm in the early days of February with extreme moves and volatility in all asset markets. Crude oil suffered its biggest two day plunge in seven years, bond yields collapsed and financial stocks led substantial falls in European equity markets. Although this partly reflects increasing investor uncertainty and anxieties over growth, oil and central bank policy, some speculative trades in far less liquid financial markets have amplified the volatility.

Despite those headwinds, it is not all gloom. In fact, there is enough evidence to suggest cyclical forces are still supportive with unemployment falling at its fastest pace since 2007, auto sales are recovering, credit growth improving and consumers’ major purchase intentions are close to their highest level since early 2001. Moreover, the latest PMIs and regional and industrial country survey data all remain at solid levels.

Morningstar analysts prefer to rate funds with a track record through a market cycle – new funds have not had time to prove the manager’s strategy works. But savvy investors should an eye on the market for potential future investment ideas.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Guinness European Equity Income C EURAcc17.05 EUR-0.71Rating
Jupiter Europe (ex UK) SmlComs I GBP Acc21.88 GBP0.99Rating

About Author

Muna Abu-Habsa  is a senior investment research analyst at Morningstar