Top European Equity Funds Bought and Sold in 2025
In 2025, European equity markets attracted substantial investment, with several funds standing out for their performance. The Euro STOXX index achieved a remarkable total return of 32.2% in sterling terms. This success surpassed the MSCI AC World index, which managed a return of 13.9%, along with other global benchmarks.
Top European Equity Funds in 2025
Investors focused their cash on the best-performing European equity funds last year, with the HSBC European Index and Artemis SmartGARP European Equity being particularly popular. According to FE Analytics, these funds drew significant net inflows amidst a growing interest in European equities.
Performance Highlights
- HSBC European Index: Net inflow of approximately £1.7 billion.
- Artemis SmartGARP European Equity: Attracted about £932 million.
- Euro STOXX: Achieved a total return of 32.2% in 2025.
Fund Details
The HSBC European Index fund, which tracks the FTSE Developed Europe excluding UK index, saw its assets rise from £4.4 billion to £7.1 billion. Its largest holdings include major companies such as ASML, Roche, and Nestle. The fund posted a total return of 26.7%, placing it in the second quartile of its sector.
Artemis SmartGARP European Equity, managed by Philip Wolstencroft, utilized a unique scoring system that evaluates stocks across eight complementary factors. This strategy led the fund to deliver the highest return in its peer group, achieving an impressive 55.9% in 2025. The fund’s total size grew from nearly £300 million to £1.6 billion.
Additional Funds with Notable Inflows
Other notable funds that benefited from high inflows include:
- BlackRock Continental European Income
- Liontrust European Dynamic
Analysts praised the performance and management of these funds, indicating strong investor confidence. The Liontrust fund, for example, has been regarded as a “compelling core offering” due to its track record of stellar performance.
Funds Facing Outflows
Despite overall positive trends, some funds experienced unexpected withdrawals. Key outflows included:
- Fidelity European: £683 million withdrawn
- Janus Henderson European Selected Opportunities: £649 million outflow
- iShares Continental European Equity Index: £646 million outflow
These trends reflect a nuanced landscape in European equity investments in 2025. While certain funds thrived, others faced significant challenges.
Conclusion
The European equity market in 2025 illustrated investors’ growing interest and the performance of specific funds. Both active management strategies and index trackers saw distinct patterns of inflow, indicating varied investor preferences in a dynamic market environment.
