Sterling-dominated European funds beat euro peers over five years

Investors in an average sterling-denominated European equities fund will see 40% return compared to ...

Investors in an average sterling-denominated European equities fund will see 40% return compared to just 7% for an identical euro version over five years. According to Lipper data, the average performance of vehicles in the IMA Europe ex UK sector is 40.67% over five years to the end of April in sterling, against 6.9% for the euro equivalents. Currency shifts have also impacted funds over three years and one year, with sterling-based funds outperforming euro-denominated portfolios -6.6% to -27% and -25% to -33% respectively. But year-to-date, an investor buying funds in the sector, mo...