The FSA Spy market buzz – 6 September 2024
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European equity funds have not received strong inflows in 2018, according to Mathieu Caquineau, senior analyst for manager research at Morningstar.
“Year-to-date, it has been a choppy market with a lot of political noise around Italy,” he told FSA, referring to the Italian budget proposal, which clashes with EU expectations.
Additionally, the UK has been publicly struggling to hammer out a Brexit deal that is amenable to both sides, creating negative sentiment among investors.
Like global markets, the European market is down year-to-date, with the MSCI Europe Index in negative territory (-5.70%), according to data from FE Analytics.
European equities also had the second lowest ranking in terms of forward-looking sentiment, after the US, among fund selectors in Asia, according to data from Fund Selector Asia’s Asset Class Research.
Only 9% of fund selectors surveyed indicated that they will be increasing allocation to the asset class in the next 12 months, while 22% are expecting to reduce their holdings in European equities.
Against this backdrop, FSA asked Caquineau to look at two Europe (plus UK) equity funds: the Invesco Pan European Structured Equity Fund and the Jupiter European Opportunities Fund.\
Invesco |
Jupiter |
|
Size |
€5.4bn ($6.14bn) |
€264m ($300m) |
Inception |
2000 |
2001 |
Manager |
Michael Fraikin and Thorsten Paarmann |
Cédric De Fonclare |
Three-year return* |
-1.46% |
-4.86% |
YTD alpha** |
-1.80% |
-4.05% |
YTD volatility** |
12.82 |
13.21 |
Morningstar analyst rating |
Silver |
Silver |
Morningstar star rating |
***** |
**** |
FE Crown fund rating |
**** |
** |
OCF (retail share class) |
1.57% |
1.72% |
OCF (clean share class) |
0.88% |
0.95% |
Machine learning Chinese investment, BlackRock’s AI patience, Time Magazine’s AI cover, happier staff equal better returns, do wealth managers add value? sexy legs and much more.
Part of the Mark Allen Group.