EM equity funds soar in January as bond strategies struggle

Focus on China and Latin America

Emerging market equity funds topped performance tables in January, with nine of the ten best-performing funds tilted to this area, although emerging market debt vehicles and many other bond sectors posted losses.

According to monthly data, the IA China/Greater China sector returned 4.5% during January, the best-performing IA sector, followed by IA Japanese Smaller Companies and IA Global Emerging Markets, which returned 2.3% each. Looking at specific funds, nine of the top ten funds were investing in emerging markets with the best-performer being the $33m MFS Meridian Latin American Equity fund, which returned 10.4%. Four funds featured in the top ten were specialising in China and four focused on Latin America with returns ranging from 8% to 10.4% (see table below). Jupiter's Teverson: How...