Emerging markets funds lead consistent performance

The most consistent Investment Management Association fund sector for top quartile returns is Global Emerging Markets sector, according F&C Investments' quarterly Fund Watch survey. Some 12 per cent of funds in this sector with a track record of three years or more (five out of 41) achieved top quartile returns over that last three discrete years. These are:

■ Aberdeen Emerging Markets (Isin: GB0033228197);

■ Aviva Emerging Markets Equity;

■ First State Global Emerging Markets Sustainability (Isin: GB00B64TS881);

■ McInroy & Wood Emerging Markets (Isin: GB00B1RWXF12); and

■ First State Global Emerging Markets (Isin: GB0030190366).

The second most consistent sector for top quartile returns over these periods was the UK All Companies sector with 6 per cent (19 out of 311 funds).

No funds in the Global Bond sector achieved consistent top quartile returns in each of the last three years, while only one out of 93 North American funds and one out of 59 UK Smaller Companies funds achieved this.

Overall 47 out of 1,231 funds (3.82 per cent) achieved consistent top quartile returns in the last three discrete years.

The best performing fund sector during the third quarter was Europe ex-UK which gained 9.3 per cent, closely followed by UK Smaller Companies up 8.4 per cent. Japan was the worst performing sector down 4.05 per cent, and the worst performing fund during this period was in this sector, Invesco Perpetual Japan down 10.9 per cent (see side bar for more details).

The best performing fund in the third quarter of 2012 was the Smith & Williamson Global Gold & Resources (also an IC Top 100 Fund) which benefited from a rise in gold stocks.

Another IC Top 100 Fund had a good run: Newton Asian Income top of the sector three year returns with bottom of the sector three year volatility returns measured to the end of third quarter. The fund made returns of 65 per cent.

Read our tip on Newton Asian Income

Number of funds achieving top quartile performance in the last three years

Source: F&C Investments

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