European funds overweight in technology stocks are the top performers in
Standard and Poor's fund rankings.
Funds such as Invesco's GT Europe growth fund, which has about 75 per cent
invested in telecoms, media and technology stocks, performed exceptionally
well in the final quarter but suffered a downturn in the last few weeks due
to volatility. Funds which did not buy into technology saw their
performance and rankings fall. S&P says most fund managers outperformed
their benchmarks in the volatile conditions.
Mainstream pan-Europ ean funds outpaced the FTSE World Europe index by an
average of 4 per cent.
Gartmore's CSF pan-European fund and the RG Europe fund were given AAA
ratings for the fourth quarter of last year. Newton's pan-European fund and
HSBC's pan-European equity fund were given AA ratings. In the European
funds excluding UK sector, the HSBC European opportun ities fund and SocGen
European growth unit trust got AA rankings.
S&P lead European fund analyst Debbie Boys says: “Many of the funds which
show significant high- or low-decile rankings on a 12-month view arrived at
these points solely because of their positioning to telecoms, media and
technology over the last three months of the year.”