Emerging Market Rated Funds

Emerging markets comfortably outperformed most developed markets in 2017 – and there are compelling reasons for their upward trajectory to continue. Emerging markets boast higher economic growth than developed markets, and shares in the sector look attractive on a valuation basis.

Global emerging market funds provide diversified exposure to regions and countries such as Asia, Latin America, Russia and Africa. Within our 10 actively managed choices we have included one bond fund, one smaller companies fund and one with a healthy yield. Indeed, emerging markets are increasingly playing a role for income-seeking investors, given continuous improvements in their dividend cultures.

We have also included two regional funds, which are more focused in nature – targeting emerging Europe and Latin America. We treat Asian equities as a separate asset group and this selection can be found on page 87.

Company and country prospects are less well-researched than in developed markets, so good actively managed emerging market funds should beat passive index trackers over the medium to long term. However, we include five rated passive funds to consider, including a bond option.

EMERGING MARKETSBrowse other rated fund groups
Fund & Sector
Rated Funds Group
1 Month Perf.
1 Year Perf.
3 Year Perf.
5 Year Perf.
UBS Global Emg Mkts Equity
UT Global Emerging Markets
View Factsheet
EMERGING MARKETS4.4%
6 / 60
18.5%
4 / 57
56.1%
2 / 52
53%
8 / 45
Hermes Gbl Emrg Mkts
FO Equity - Emerging Markets
View Factsheet
EMERGING MARKETS2.6%
-
16%
-
54.3%
-
76.8%
-
Fidelity Emerging Markets
UT Global Emerging Markets
View Factsheet
EMERGING MARKETS3.3%
14 / 60
15.2%
9 / 57
42.6%
18 / 52
55.9%
4 / 45
BlkRck Frontiers Inv Trst
IT Global Emerging Markets
View Factsheet
EMERGING MARKETS0.3%
8 / 11
14.3%
1 / 11
53.3%
1 / 10
81.4%
1 / 9
JPM Emg Mkts IT plc
IT Global Emerging Markets
View Factsheet
EMERGING MARKETS1.8%
4 / 11
13.9%
2 / 11
46.1%
2 / 10
44.5%
2 / 9
Invesco Perp Gbl Emg Mkts
UT Global Emerging Markets
View Factsheet
EMERGING MARKETS2.8%
28 / 60
12.8%
18 / 57
44.8%
14 / 52
53.3%
7 / 45
Templeton Emg Mkts
IT Global Emerging Markets
View Factsheet
EMERGING MARKETS0.8%
7 / 11
8.9%
7 / 11
36.4%
3 / 10
21%
6 / 9
Aberdeen Gbl Latin Ameri Eq
FO Equity - Latin America
View Factsheet
EMERGING MARKETS-11.4%
13 / 41
7.7%
26 / 41
9.6%
14 / 41
-21.1%
15 / 37
Templeton EmegMkts SmlCos
FO Equity - Emerging Markets
View Factsheet
EMERGING MARKETS1.9%
-
7.5%
-
35%
-
64.2%
-
BlackRock Emg Eur Plc
IT European Emerging Markets
View Factsheet
EMERGING MARKETS4.9%
1 / 2
7.2%
1 / 2
48%
1 / 2
33.4%
1 / 2
Utilico Emg Mkts
IT Global Emerging Markets
View Factsheet
EMERGING MARKETS-1.4%
9 / 11
0.7%
10 / 11
22.4%
8 / 10
26.3%
4 / 9
M&G Emerging Mkts Bd
UT Global Emerging Markets Bond
View Factsheet
EMERGING MARKETS1.5%
4 / 12
-0.4%
2 / 12
33.9%
1 / 10
35.4%
1 / 10
Data provided by
Reviewed 01 April 2018

Rated Funds Update: Rated Funds 2018

Review: first quarter of 2018

There has been some rotation in fund flows from developed markets, chiefly away from the US, and into developing markets over the quarter. That is reflected in index returns from the asset class. 

Latin America was the best performing emerging market region over the quarter. The FTSE Latin America index gained 3.8 per cent, followed by MSCI Frontier Markets with a 1.4 per cent uplift. The broader MSCI Emerging Markets index was down 2.2 per cent.

Index performance is broadly reflected among the Rated Funds. BlackRock Frontiers trust (up 2.9 per cent) and its sister trust BlackRock Emerging Europe (-0.8) led the pack over the period, closely followed by Aberdeen Latin America Equity, which lost 1.6 per cent.

The worst return was from Invesco Perpetual Global Emerging Markets, down 5.2 per cent. 

However, Templeton Emerging Markets (-4.7 per cent) is the trust we are placing under review, following the sudden departure of lead manager Carlos Hardenberg, who had transformed performance since taking over from Mark Mobius in October 2015. His deputy Chetan Sehgal has taken over but is something of an unknown quantity at this stage. 

Trust under review: Templeton Emerging Markets 

View a full list of our Rated Funds 2018 here