European equities have gone from fund managers' biggest headache to their best performers, having joined tech stocks at the top of the leader boards in May.
The best performing Investment Association (IA) fund sector over the month to 30 May 2017 was Technology and Telecommunications, with a sector average return of almost 6 per cent. It was followed by European Smaller Companies, with a sector average return of 5.2 per cent, and Europe excluding UK, with 5.03 per cent. Europe including UK funds also did well, with a sector average return of almost 5 per cent over the month to 30 May.
Until recently, US stocks were leading the pack, with MSCI USA index returning almost double MSCI Europe ex-UK in 2016. But so far in 2017, MSCI Europe ex-UK index has returned 13.5 per cent, against 5.02 per cent for MSCI USA.