Selectors missed US equities opportunity amid volatility
European fund selectors have been overwhelmingly bullish on absolute return strategy funds as a response to market volatility – but they could have made more returns if they took the risky option of US equities.
EM fund tops tech sector after Facebook privacy blunder
After news of Facebook’s privacy blunder broke last month, all European-domiciled technology focused funds have seen returns fall although two which focus on emerging market tech firms have bucked the trend, according to FE Analytics.
US equity large cap funds preferred but small caps edge ahead
Strong gains in US equity markets over the past year have encouraged investors to target the asset class in 2018, but while most prefer large cap funds it’s the small caps that have generated the better returns.
Why European investor performance trailed the US and Latam
The depreciation of the US dollar led to European investors lagging behind their US and Latin American counterparts in terms of performance in 2017 despite making the right call about being overweight European equities, according to Natixis Investment Managers.
Click through the gallery to find out what asset allocation looked like for European, US, and Latin American investors in 2017.
Negative US gov’t bond sentiment shows little sign of change
Against the backdrop of a US bond market sell-off in January, a look at the performance of European US Government bond funds shows that not a single one has beaten the 10-year Treasury Note return of 7.25% over the three years to 31 December 2017, according to FE Analytics.
Opportunities for US equities despite negative sentiment
The top European US equity funds returned between 15.14% to 25.63% over the sector average since US president Donald Trump took office in 2017, according to FE Analytics. But negative sentiment is leading many fund selectors to pull out the asset class.