Valuations at multi-year low as euro anxiety gets deeper

Europe ex UK sector sees outflow of £126m as retail investors turn away from region

With the trend away from Europe-centric funds gaining momentum driven by fears for the euro, retail investors are increasingly turning away from the region. The IMA Europe ex UK sector saw a net outflow of £125.5m in April, while the FTSE Eurofirst 300 index of top European shares had slumped from a mid-April peak by around 9.6% by 10 June on concerns about the eurozone debt crisis. However, Europe ex UK funds have generally benefitted from the rally in European shares up until April, with the average vehicle in the IMA Europe ex UK sector up 11.4% over 12 months to 10 June, according to...