Why Have European Equity Funds Struggled in 2016?

Many European equity funds have struggled to deliver positive performance in 2016, in contrast with 2015 when most top rated funds outperformed their peers

Francesco Paganelli 29 November, 2016 | 3:30PM
Facebook Twitter LinkedIn

European shares took a nosedive at the start of 2016, dragged down by financials stocks. This trend was repeated immediately after the June 2016 Brexit vote. Despite a partial recovery, as of the end of October, the Morningstar Europe Index was still in negative territory for 2016, down 3.7%.

After the surprising outcome of the U.S. presidential election, the next round of political events stretches its shadow over the market outlook for European stocks, starting with the December 4 Italian referendum.

Then we enter an important election year for France and Germany, while the United Kingdom is expected to begin negotiations to leave the European Union.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
ASI Europe ex UK Income Equity R Acc165.50 GBP0.24Rating
Comgest Growth Europe EUR Acc40.54 EUR0.96Rating
Jupiter European L Inc3,159.09 GBP0.23Rating
Schroder European A GBP Acc1.32 GBP0.61Rating

About Author

Francesco Paganelli  is a Fund Analyst for Morningstar in Italy