LIVE MARKETS-A good year for European stocks, but not for fund managers

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GOOD YEAR FOR EUROPEAN STOCKS, BUT NOT FOR FUND MANAGERS

It's been a good year so far for European stocks, but, according to research from BNP Paribas Exane, a less good year for European asset managers.

They find that the bulk of flows into European funds have been into ETFs largely tracking bank and defence stocks, by sectors, and German, by bourse.

Maybe that's wise. BNP Paribas Exane say that of the universe of European funds they track only 17% have outperformed the benchmark, and the average fund has underperformed by 4%.

If you look at the most-owned stocks, you can see why.

The five stocks active managers are most overweight Schneider Electric SCHN.PA ASML ASML.AS SAP SAPG.DE Novo Nordisk NOVOb.CO and Astrazeneca AZN.L have all underperformed the STOXX 600, by a whopping 28% in the case of Novo.

(Alun John)

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