Fund Research: Europe’s Shining Stars

Morningstar OBSR reveals the top funds for investors seeking exposure to European equities

Muna Abu-Habsa 22 August, 2012 | 12:57AM
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The past few years have proved turbulent for European equities, but no more so than in the last year. After a promising start to the year where continental European equities rose by more than 9% in the first quarter (as measured by the MSCI Europe ex-UK Index), most of the gains were lost in the second quarter, with the index tumbling by nearly 8%.

A clear trend emerged in the first half of 2012: nearly any kind of risk cost fund managers and their investors. Going down the cap ladder hurt; many commodities hurt; emerging markets hurt.

Most managers are currently weighing up the possibilities of either a mid-cycle slowdown or the economy falling back into recession. Managers have generally been reducing the sector bets and bringing their funds closer to the benchmark until there is more clarity surrounding the macro environment.

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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.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Barings Europe Select A GBP Inc5,318.14 GBP0.51Rating
BGF European A2 USD214.89 USD0.04Rating
BlackRock European Dynamic A Acc1,004.94 GBP0.65Rating
Janus Henderson European Gr A Acc289.82 GBP0.74Rating
Liontrust European Opports A Acc GBP  
VT Argonaut European Alpha A GBP Acc351.89 GBP0.58Rating

About Author

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