Debunking the theory UK funds flounder

A handful of European managed funds with UK exposure are producing better returns than 94 per cent of Australia's managed funds, over a five year period.

Almost three months on since the UK cast its vote to leave the European Union, we found that although all of the European (including UK) funds on the Money Management Investment Centre (MMIC)/Financial Express' (FE) produced negative returns over the last 12 months, four of the funds generated returns between 15 and 14 per cent per annum over the last five years.

European funds with UK exposure over five years

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Meanwhile, only 28 Australian managed funds on MMIC could beat BT's wholesale European share fund's performance over the same period (five years), with 94 per cent of Australia's managed funds producing a return under 15 per cent.

Over the medium term (three years), those four top performing European (UK) funds produced returns of between 7.5 and 9.5 per cent per annum, over the last three years.

Simultaneously those funds also outperformed 87 per cent of Australia's managed funds listed on the MMIC, with only 72 out of 589 (Australian funds) producing a return of 9.50 per cent or over, over the last three years.

European funds with UK exposure over three year

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