Top 5/Bottom 5: Global Emerging Markets

Top 5/Bottom 5: Global Emerging Markets

Emerging markets have had a tough last few years, especially since the Federal Reserve started rolling back its stimulus. A number of emerging economies are still struggling with a weak currency and low foreign investments.

The average performance across the sector sits at £1,178 in the past 12 months based on an initial £1,000 – over three years it returned £1,159.

A total of 94 funds sit in the GEM sector with the Templeton Emerging Markets fund topping the table over the year to 20 April 2015. The fund has a return of £1,333 on a £1,000 initial investment. The $423.6m (£238.8m) fund is managed by Mark Mobius and aims to achieve long-term capital appreciation by investing primarily in equity securities and depository receipts of small cap-companies. These companies are either registered or perform a substantial part of their business in emerging markets.

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The fund invests heavily in emerging Asia, particularly in consumer cyclical and technology sectors.

This is followed by the JPMorgan Emerging Markets Small Cap fund, which returned £1,306. Managed by Amit Mehta, the $448.3m (£300.3m) fund seeks to provide long-term capital growth by investing primarily in small-cap emerging market companies. The fund’s asset allocation includes 97.32 per cent in stocks and the remaining divided between bonds, cash and other investments.

It is noted that most of the top performers invest in emerging Asia, followed by developed Asia and Africa. The top sectors they invest in include consumer cyclical, technology, financial services and so on.

According to the data from Morningstar, FP Hexam Global Emerging Markets fund is listed as the worst performing fund with a return of £979 on a £1,000 investment. A small fund with £4.7m in total net assets, the objective is to achieve long-term capital growth.

Across many funds, emerging Asia remains the top choice for majority of global emerging markets funds.

Best And Worst UK All Companies Funds Over One Year To 20 April 2015
Top 5
Templeton Emerging Markets£1,333
JP Morgan Emerging Markets Small Cap Fund£1,306
Hermes Global Emerging Markets£1,276
GS Growth and Emerging Markets Core Equity Portfolio£1,260
J O Hambro Capital Management Fund£1,258
Bottom 5
FP Hexam Global EM Fund£979
Templeton Global Emerging Markets£1,055
Newton Emerging Income £1,066
M&G Global Emerging Markets£1,093
Lazard Developing Markets Retail£1,093
Notes: Figures as at 20 April, 2015, based on £1,000 initial investment. Source: Morningstar

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