Emerging markets fund performance flat in past year

Emerging markets funds are struggling to produce positive returns in the current market, figures from an upcoming Money Management survey show.

The performance results, covering funds in the IMA Global Emerging Markets sector, show returns for these funds in the 12 months to 19 April 2012 averaged just £923 on an initial investment of £1,000.

Of the 50 funds in the sector, only nine managed to produce a positive return.

The best return of £1,061 came from the First State Global Emerging Markets Leaders fund. At the other end of the scale, the poorest performing fund, HEXAM Global Emerging Markets, returned just £785.

The top five best performers on an initial investment of £1,000 over this time period were:

• First State Global Emerging Markets Leaders, £1,061;

• St James’s Global Emerging Markets, £1,054;

• UBS Emerging Markets Equity Income, £1,031;

• First State Global Emerging Markets, £1,029;

• Aberdeen Global Emerging Markets Smaller Companies, £1,022.

Peformance was stronger over a 10 year period, with the 20 funds reaching this benchmark averaging at £3,004 on a £1,000 initial investment.

Emerging markets have struggled over the past year due to factors including the eurozone debt crisis and concerns around US growth prospects.

While markets have traditionally focused around the BRIC countries of Brazil, Russia, India and China, some analysts have argued that growth markets will drive the future economy.

A full special report on emerging markets will be published in the June edition of Money Management.