European Funds Outperform in April

Smaller companies funds in Eurozone, Nordics and the UK continue their strong run,while India and Japan funds struggle

James Gard 4 May, 2021 | 12:06AM
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Europe flags

Smaller companies’ funds maintained their 2021 winning streak in April, according to the latest Morningstar data, with European funds leading the charge. The worst 10 performers last month were either Japan or India funds, the latter country dealing with a lethal second wave of coronavirus. Overall stock market conditions were generally benign in April, with low volatility and high commodity prices boosting cyclical stocks.

While the Eurozone has just gone into a double-dip recession as the economic fallout from the coronavirus continues, a European smaller companies fund was the best performer under Morningstar coverage last month. Silver-rated Aberdeen Standard European Smaller Companies, just sneaked into the top spot with a gain of 9.7% in April. The €1.5 billion fund has a 52% weighting towards the Eurozone, a 14% allocation to countries outside of the currency bloc, and a 33% weighting towards the UK. Top holdings include UK-listed asset management firm Intermediate Capital (ICP) and Finland retail conglomerate Kesko (KESKOB). “An experienced small-cap manager applying a proven process to a European opportunity set makes SLI European Smaller Companies a strong choice in the space,” says Morningstar analyst Samuel Meakin.

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