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

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.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Comgest Growth Europe EUR Acc31.51 EUR-0.15
Jupiter European2,688.66 GBP0.96
Schroder European A GBP Acc114.01 GBP0.80
SLI European Equity Income Ret Acc143.81 GBP0.92

About Author

Francesco Paganelli  is a Fund Analyst for Morningstar in Italy

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