Funds Face "Euro Drag"
From Wall Street Journal
U.S. funds investing in Europe are discovering that the currency trade may be more important than the stock trade. The lesson is courtesy of the euro's 14% decline against the dollar this year. The average European fund has fallen 2.81% year-to-date against an average return of 8.01% for diversified U.S. stock funds. Still, the lagging performance is not keeping investors away: European funds had net inflows of $873.1 million during the first seven months of the year, according to Financial Research Corporation, and this figure is up from a net outflow of $2.3 billion in 1999.
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