Top managers steer clear of sovereign debt crisis

European funds have recouped most of last year's losses by focusing on global companies and avoiding debt-ridden countries

In a turbulent year for European markets, top managers have generated performance by investing in global companies and steering clear of the countries hit by the sovereign debt crisis. The first five months of this year saw the FTSE World Europe ex UK index drop 23% to about 170 points as the credit crisis rolled into a sovereign crisis. In May, a €110bn three-year bailout package was drawn up between the eurozone members and the IMF to rescue Greece’s embattled economy. While the market has since recouped most of these losses, the problems persist, with Ireland having now accepted ex...