Chaos in China’s stock markets dominated headlines in August, with the effects keenly felt across global stock markets. As a result, European markets have suffered their worth month in some four years. FE Trustnet looks at the Europe funds which were hit the hardest.

European shares suffered their worst August since the height of the sovereign debt crisis back in 2011. Investor sentiment was gripped last month over concerns that China’s role as world economic growth driver is fast coming to an end.

The FTSE Eurofirst 300 – an index of 300 leading European companies - shed 5.98 per cent in August, according to FE Trustnet data. Germany’s DAX lost 6.65 per cent, while France’s CAC 40 suffered heavily – down 14.66 percent.

The price of oil also dampened investor sentiment in August, as did the possibility of a pending US interest rate hike. 

Looking at the Investment Association’s Europe excluding UK fund sector – the fund hit the hardest in August was Aberdeen Global’ European Equity Ex UK fund – which shed 6.19 per cent, FE Trustnet data shows.

The IA’s Europe ex UK sector was down 4.01 per cent last month, with all 108 funds down. Argonaut’s well-rated European Enhanced Income fund, which managed to return to beating its sector this year, also suffered – down 5.86 per cent in August.

Threadneedle’s European Select fund, headed up by well-regarded manager David Dudding, also made the top 10 funds with the worst losses in August.

The least worst performing fund from the sector last month was Marlborough’s European Multi-Cap fund with -0.2 per cent. Invesco Perpetual’s European Opportunities trailed in second place with -1.01 per cent.

Source: FE Trustnet data, correct as of 01/09/2015