Consumer stocks have been the key driver of performance for the best global emerging market funds this year, although managers caution the sector has experienced strong price rises.
Managers have also been increasing exposure to smaller emerging nations they think offer better investment opportunities than Brazil, China and India. Year to date, GEM funds have delivered the second highest average returns of any IMA sector. The peer group has returned 16.91% to 18 October, according to Morningstar, only bested by UK Smaller Companies. Leading the sector for the three years to 18 October is the £1.9bn Aberdeen Emerging Markets fund, managed by Hugh Young and his team. It has returned 56.8%, compared to a sector average of 19.4%. Fund manager Mark Gordon-James sa...
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