Fund buyers back emerging markets funds as Canaccord switches out exposure

Comparatively low returns no deterrent for investors

Fund analysts and buyers are not set to "write off emerging market funds just yet" despite underperformance relative to developed market peers over the past decade and a growing preference for exposure to key investment trends through thematic vehicles.

It follows the recent move from Canaccord Genuity Wealth Management to entirely eliminate its portfolios' exposure to emerging market and country-specific funds as part of its repositioning in the wake of the coronavirus sell-off, as revealed by Investment Week in August. The £25.9bn AUM wealth firm now uses global and thematic funds to gain emerging market exposure, utilitising its three preferred themes of technology, health and ESG, through funds and investment trusts such as Baillie Gifford's Monks and Scottish Mortgage. Central to Canaccord's decision, according to investment dir...