"Since the start of 2011, there has been a significant change in market fortunes, with European markets performing relatively well and sharp falls in Asia," said Oriel Securities’ Iain Scouller.
"The Asian investment fund sector average net asset value (NAV) has fallen by 5 per cent, whilst the European investment fund sector average NAV has risen by 4 per cent in the first half of the year."
Performance of sectors over 6-months
Source: FE Analytics
FE Analytics data backs up his point; the AIC IT Europe sector has returned an average of 5.34 per cent in the past six months, while IT Asia Pacific ex Japan Equities has lost 4.05 per cent.
Scouller says there is the potential for more money to be made in European trusts.
"European funds have scope for further discount-narrowing over the second half of this year, with investors showing more interest in the region following the positive returns so far," he said.
The analyst points to Jupiter European Opportunities and Fidelity European Values – which FE Trustnet shows as trading at discounts of 10 per cent and 12 per cent respectively – as two trusts worth a look.
Performance of trusts vs sector over 1-yr
Source: FE Analytics
Our data shows both trusts beating the IT Europe sector over the past year. The Fidelity fund has not fared as well in the long-term, however.
Scouller added: "[We also like] BlackRock Greater Europe, as it offers exposure to a high-conviction concentrated portfolio of around 50 companies. It is currently on a 2 per cent discount and generally trades at close to NAV to reflect the regular tender offers."