The European funds bucking the downturn

UK investors tend to shun European shares, and those who do so may have felt vindicated in 2024. The FTSE Europe ex-UK index made a miserly sterling total return of 2.2 per cent last year, ending 2023's hot streak and putting it well behind other regions.

As a reminder, the S&P 500 returned around 25 per cent, with Asian equities on roughly 14 per cent and the FTSE 100 and Japan's Topix both approaching 10 per cent gains.

Active funds often struggle in bad markets, and that seems evidenced by the fact that the average fund in the Investment Association's Europe ex UK sector grew by just 1.7 per cent. But it's interesting to note that, in a year when tracking the European market would have led to disappointment, multiple funds have generated some pretty rich returns here.