European small cap growth funds have outperformed rival fund categories over the last three years, and Finnish and Swedish fund selectors have led the pack in cashing in.
Fund selectors in Europe have changed tack. A year ago they were strongly in favour of small caps, but now they believe it’s large caps that have the better return prospects, according to data gathered at EIE events across Europe this year.
Swedish fund selectors have further increased their focus on small cap equities. Nowhere in Europe, smaller companies are as popular as in the Nordic nation.
European fund selectors have adopted an increasing bias towards large cap stocks. The tendency is strongest for European equities.
Norwegian fund buyers have been aggressively shifting their preferences for large and small caps over the past year. While European small caps are much less in favour now, their EM equivalents are more popular than ever.
Fund buyers attending yesterday’s Expert Investor Denmark conference in Copenhagen love European small cap stocks.
Belgian fund selectors are moving from small caps to large caps within European equities.
Money flows to developed equity funds are now at the lowest level since June 2013, according to the latest EIE fund flows data.
Fund buyers in most European countries favour European small cap companies over large caps.
The Swedes are Europe’s only fund selectors who prefer small caps within EM equities