Emerging markets: The style behind the alpha

Significant outperformance in 2021

When we completed our annual fund manager performance review, we were immediately drawn to our active emerging market list.

All our fund managers outperformed the MSCI Emerging Markets benchmark in 2021. The reason this usually happens is if you have built a portfolio of strategies with similar investment styles that have all benefitted from a tailwind to that investment style in the year. Given we are focused on building diversified portfolios of strategies with complementary investment styles we were confident this had not happened. So we did a bit of digging and had a look at how the entire active emerging market fund manager universe performed last year. Fossil fuel investors 'betting on climate ...