Worst European equity funds of 2018
By Jassmyn Goh, 3 Jan 19
Find out which two funds made a return and the funds that suffered the most during the year
The only two European equity funds that did manage a return for investors during 2018 were the Oldfield Overstone Ucits EAFE Equity A fund and the Boussard and Gavaudan Erisa A fund, which returned 8.6% and 3.6% respectively. However, these two funds were not available to continental European investors.
While quite a small fund at €14.4m, the Oldfield fund had largely UK stocks at 36.9%, followed by Germany (13.3%), France (11.5%), Italy (10%), and Sweden (5.9%).
Its largest sector weightings were in industrials (22.6%), financials (18%), and energy (10.9%), with consumer discretionary and consumer staples both at 9.6%.
Best fund a loser
The best performing European equity fund over the year to 31 December 2018 available to pan-European investors was the Seilern Stryx Europa UR fund which lost 1.3%. However, this compares with the pan-European STOXX 600 index, often used as a benchmark, which fell 10.2% in 2018.
When the fund data is drilled down further, it is clear that European equities really suffered in 2018 as any fund that lost around 10.6% was still considered to be in the top performing quartile.
Sentiment toward European equity funds was also weak last year and has been on the slide since the second quarter of 2017. The sector ranked 23 out of 26 in popularity among European fund selectors in the fourth quarter of 2018 , according to Last Word Research.
That research found that in Q3, 23% of selectors were looking to buy European equity funds over the 12 months to September 2019, 55% were looking to hold, 18% to cut positions, while 4% did not use the asset class.
According to Morningstar, between January and October of 2018 only two months saw inflows into the sector, while the asset class experienced outflows of €16.13bn over this time period.
See the performances
Click through the gallery to find out which European equity funds had the most disappointing 2018.
The funds in this gallery were found using FE Analytics within the FCA Recognised and OffShore Mutual universes that were domiciled in either Luxembourg or Ireland, and were available for sale in at least three continental Europe countries.