Trending: Three Top-Performing European Equity Funds
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Trending: Three Top-Performing European Equity Funds

Map of europe
MutualFunds.com analyzes the search patterns of our visitors every two weeks to find the top trending funds. By sharing these trends with our readers, we hope to provide insights into what the financial world is concerned about and how to position your portfolio.

First, we select the top trending category from more than 200 categories listed on MutualFunds.com based on the percentage increase in monthly viewership. Then, we choose the top three funds with the highest one-year trailing total returns from the top trending category. To ensure funds’ quality and staying power, we only look at those mutual funds with a minimum of $150 million in assets and a track record of at least three years. We also remove those mutual funds closed to new investors and not available for investment outside registered accounts such as retirement or 529 accounts.

In this edition, we take a closer look at trending European Equity Funds for investors.

With rising earnings expectations and improving economic data, European stocks followed U.S. stocks to record highs over the past couple of weeks. However, higher inflation and regulatory risks could lead smaller value stocks to outperform larger growth stocks.

Our breakdown of each fund includes vital aspects, such as one-year performance, performance from inception, fund expenses, investment strategy, and management team’s profile, to give you an overview of how these funds hold up against their peers.

Be sure to check out the European Equity Funds page to find out more about the other funds in this category as well.

Trending Funds

1. Morgan Stanley Europe Opportunity Fund (EUGAX)

The number one mutual fund on this week’s list is the Morgan Stanley Europe Opportunity Fund (EUGAX). It provided an exceptional trailing one-year total return of 49.87% with a 1.38% expense ratio, putting it in the middle of the road on today’s list.

The fund seeks to maximize capital appreciation by investing in high-quality, undervalued, established, and emerging companies in Europe. The fund’s portfolio managers typically favor companies with sustainable competitive advantages that can be monetized through growth. The investment process also integrates sustainability into its analysis.

The fund has been co-managed by Kristian Heugh and Wendy Wang for the past year and a half. Kristian joined Morgan Stanley in 2001 and is the Head of the Global Opportunity team and International Investing for Counterpoint Global. Wendy joined Morgan Stanley in 2012.

The fund’s portfolio is spread out across Germany (14.12%), the UK (13.7%), the U.S. (11.49%), and Switzerland (10.34%), among various other European and Nordic countries. In terms of sectors, the portfolio is concentrated in Consumer Cyclical (38.2%), Technology (18.67%), and Consumer Defensive (13.74%).

Want to know more about portfolio rebalancing? Click here.

EUGAX
 

Source: Barchart.com.

2. Invesco European Small Company Fund (ESMAX)

The Invesco European Small Company Fund (ESMAX) comes in second place. It generated a one-year trailing return of 42.52% with a 1.54% expense ratio and 0.94% yield, making it the most expensive fund.

The fund’s strategy is to pursue long-term growth by investing in a diversified portfolio of reasonably-priced, high-quality, small-cap European companies with solid fundamentals and sustainable earnings growth. In particular, the fund holds many small-cap blend stocks with price-earnings ratios below the category averages.

The fund is managed by Jason T. Holzer and Borge Endresen, who have an average tenure of about 20 years. Jason joined Invesco in 1996 and works as a lead manager and portfolio manager. Borge joined Invesco a few years later in 1999 and is a portfolio manager for international growth and emerging market strategies.

The fund’s portfolio is primarily concentrated in the United Kingdom (31.28%) and France (26.98%). In sector terms, the fund holds mainly Industrials (28.5%), Information Technology (21%), and Consumer Discretionary (15%). Notably, the fund also consists of about 11% cash to provide flexibility for targeting new opportunities.

Find funds suitable for your portfolio using our free Fund Screener.

ESMAX
 

Source: Barchart.com.

3. Fidelity Nordic Fund (FNORX)

The Fidelity Nordic Fund (FNORX) rounds out the list. It has a one-year trailing return of 41.36% with a 0.96% expense ratio and a 1.25% yield, making it the highest yielding fund on the list.

The fund’s strategy is to grow long-term capital by investing at least 80% of its assets in Danish, Finnish, Norwegian, and Swedish issuers and other investments tied economically to the Nordic region. In addition to their strong track record, Nordic countries have a significant level of diversification across different industries.

The fund is managed by Andrew Sergeant, who joined Fidelity Investments in 2005 and worked as an analyst and portfolio manager.

The fund’s portfolio consists of Industrial (26.32%), Financial Services (16.43%), and Healthcare (13.14%), among other sectors. While many funds in the category focus on a large-cap blend, FNORX focuses on more mid-cap growth-oriented opportunities.

Learn more about different Portfolio Management concepts here.

FNORX
 

Source: Barchart.com.

The Bottom Line

European equities have performed well alongside U.S. stocks over the past few months. However, while these funds have outperformed over the past year, investors may want to be wary of rising inflation and the Delta variant of COVID-19. These trends could jeopardize large-cap growth stocks and push investors toward smaller value-oriented names.

And don’t forget to visit our News section to catch up with the latest news about mutual fund performance.

Fund returns are as of Aug 11, 2021.


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Find out why $30 trillon is invested in mutual funds.

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Map of europe

Trending: Three Top-Performing European Equity Funds

MutualFunds.com analyzes the search patterns of our visitors every two weeks to find the top trending funds. By sharing these trends with our readers, we hope to provide insights into what the financial world is concerned about and how to position your portfolio.

First, we select the top trending category from more than 200 categories listed on MutualFunds.com based on the percentage increase in monthly viewership. Then, we choose the top three funds with the highest one-year trailing total returns from the top trending category. To ensure funds’ quality and staying power, we only look at those mutual funds with a minimum of $150 million in assets and a track record of at least three years. We also remove those mutual funds closed to new investors and not available for investment outside registered accounts such as retirement or 529 accounts.

In this edition, we take a closer look at trending European Equity Funds for investors.

With rising earnings expectations and improving economic data, European stocks followed U.S. stocks to record highs over the past couple of weeks. However, higher inflation and regulatory risks could lead smaller value stocks to outperform larger growth stocks.

Our breakdown of each fund includes vital aspects, such as one-year performance, performance from inception, fund expenses, investment strategy, and management team’s profile, to give you an overview of how these funds hold up against their peers.

Be sure to check out the European Equity Funds page to find out more about the other funds in this category as well.

Trending Funds

1. Morgan Stanley Europe Opportunity Fund (EUGAX)

The number one mutual fund on this week’s list is the Morgan Stanley Europe Opportunity Fund (EUGAX). It provided an exceptional trailing one-year total return of 49.87% with a 1.38% expense ratio, putting it in the middle of the road on today’s list.

The fund seeks to maximize capital appreciation by investing in high-quality, undervalued, established, and emerging companies in Europe. The fund’s portfolio managers typically favor companies with sustainable competitive advantages that can be monetized through growth. The investment process also integrates sustainability into its analysis.

The fund has been co-managed by Kristian Heugh and Wendy Wang for the past year and a half. Kristian joined Morgan Stanley in 2001 and is the Head of the Global Opportunity team and International Investing for Counterpoint Global. Wendy joined Morgan Stanley in 2012.

The fund’s portfolio is spread out across Germany (14.12%), the UK (13.7%), the U.S. (11.49%), and Switzerland (10.34%), among various other European and Nordic countries. In terms of sectors, the portfolio is concentrated in Consumer Cyclical (38.2%), Technology (18.67%), and Consumer Defensive (13.74%).

Want to know more about portfolio rebalancing? Click here.

EUGAX
 

Source: Barchart.com.

2. Invesco European Small Company Fund (ESMAX)

The Invesco European Small Company Fund (ESMAX) comes in second place. It generated a one-year trailing return of 42.52% with a 1.54% expense ratio and 0.94% yield, making it the most expensive fund.

The fund’s strategy is to pursue long-term growth by investing in a diversified portfolio of reasonably-priced, high-quality, small-cap European companies with solid fundamentals and sustainable earnings growth. In particular, the fund holds many small-cap blend stocks with price-earnings ratios below the category averages.

The fund is managed by Jason T. Holzer and Borge Endresen, who have an average tenure of about 20 years. Jason joined Invesco in 1996 and works as a lead manager and portfolio manager. Borge joined Invesco a few years later in 1999 and is a portfolio manager for international growth and emerging market strategies.

The fund’s portfolio is primarily concentrated in the United Kingdom (31.28%) and France (26.98%). In sector terms, the fund holds mainly Industrials (28.5%), Information Technology (21%), and Consumer Discretionary (15%). Notably, the fund also consists of about 11% cash to provide flexibility for targeting new opportunities.

Find funds suitable for your portfolio using our free Fund Screener.

ESMAX
 

Source: Barchart.com.

3. Fidelity Nordic Fund (FNORX)

The Fidelity Nordic Fund (FNORX) rounds out the list. It has a one-year trailing return of 41.36% with a 0.96% expense ratio and a 1.25% yield, making it the highest yielding fund on the list.

The fund’s strategy is to grow long-term capital by investing at least 80% of its assets in Danish, Finnish, Norwegian, and Swedish issuers and other investments tied economically to the Nordic region. In addition to their strong track record, Nordic countries have a significant level of diversification across different industries.

The fund is managed by Andrew Sergeant, who joined Fidelity Investments in 2005 and worked as an analyst and portfolio manager.

The fund’s portfolio consists of Industrial (26.32%), Financial Services (16.43%), and Healthcare (13.14%), among other sectors. While many funds in the category focus on a large-cap blend, FNORX focuses on more mid-cap growth-oriented opportunities.

Learn more about different Portfolio Management concepts here.

FNORX
 

Source: Barchart.com.

The Bottom Line

European equities have performed well alongside U.S. stocks over the past few months. However, while these funds have outperformed over the past year, investors may want to be wary of rising inflation and the Delta variant of COVID-19. These trends could jeopardize large-cap growth stocks and push investors toward smaller value-oriented names.

And don’t forget to visit our News section to catch up with the latest news about mutual fund performance.

Fund returns are as of Aug 11, 2021.


Sign up for Advisor Access

Receive email updates about best performers, news, CE accredited webcasts and more.

Popular Articles

Download our free report

Find out why $30 trillon is invested in mutual funds.

Why 30 trillion is invested in mutual funds book

Why 30 trillion is invested in mutual funds book

Download our free report

Find out why $30 trillon is invested in mutual funds.

Why 30 trillion is invested in mutual funds book

Download our free report

Find out why $30 trillon is invested in mutual funds.


Read Next