Following the Conservative’s majority win in the general election, attention has turned to the promised referendum over the UK’s continued membership in the EU. Over the next few months various business leaders and politicians are likely to come out with their stance over the UK’s future with Europe, but the consensus so far appears to lean towards staying with the EU.
Continued membership would likely be the best option for markets, as uncertainty is not favourable. Investors would have to wonder what would happen to investment sectors such as Europe including the UK.
To qualify for the Europe including UK sector, funds must invest at least 80 per cent of assets in European equities. These may include UK equities, but may not exceed 80 per cent of the fund’s assets.
The best performing fund in the sector, judged by cumulative performance based on an initial £1,000 investment over one year, is currently the New Capital Dynamic European Equity fund. The fund invests 28.3 per cent in UK equities, 10.9 per cent in Swiss equities, 9.4 per cent in Dutch equities, with the remained allocated among Spanish, French, German and other international equities, as well as money market and other. The largest holdings are manufacturing company Sampo Corp, banking and financial services company ING Group N.V., and IT provider for travel and tourism Amadeus IT Holdings SA.
The Franklin European Growth fund was the worst performing in the sector over the past year. The fund invests 49.4 per cent in UK equities, 14.6 per cent in French equities, 9.1 per cent in Belgian equities, and 26.9 in others. The largest holdings are pharmaceutical company Sanofi, beverage and brewing company Anheuser-Busch Inbev SA, and publishing company Reed Elsevier NV.
| Top 5/Bottom 5 Europe including the UK funds, one year to 18 May 2015 | |
| Top 5 | |
| New Capital Dynamic European Equity | £1,027 |
| LO Funds - Europe High Conviction Systematic Hedged | £1,026 |
| Carmignac Ptf Grande Europe | £1,022 |
| JGF-Jupiter European Growth | £1,018 |
| GAM Star (Lux) European Momentum | £1,015 |
| Bottom 5 | |
| TU Unit | £1,003 |
| JPM Europe Strategic Value | £1,003 |
| GS GIVI Europe Equity Portfolio Base Snap | £1,003 |
| Franklin Mutual European | £1,001 |
| Schroder ISF European Equity Yield | £1,001 |
| Franklin European Growth | £999 |
| Notes: Figures as of 18 May 2015. Source: FE. | |
Previous Top 5/Bottom 5: