First State Global Emerging Markets leads the pack

While emerging market veteran, Angus Tulloch has fully relinquished his role as lead manger, handing over the reigns to co-manager Jonathan Asante, the fund has continued to post strong returns - continually outpacing its benchmark, the MSCI Emerging Market Index.

Mr Asante shares the same investment philosophy to Mr Tulloch and prefers stocks with quality management, strong franchise and sustainable earnings growth. He is joined at the helm by Glen Finegan, who has been with First State since 2001, and boasts close to a decade's experience in emerging markets.

It is worth noting that First State raised its annual management charge by 25 basis point to 1.75 per cent earlier this year. "As the fund is soft-closed, it's a clear attempt to eke out more revenue from existing investors. The higher cost bites into their future returns and this gains significance when compounded over the long term," criticises Morningstar.

The fund's performance has held up well over recent months, positively impacted by AngloGold Ashanti, which rose with the gold price. According to the managers, the portfolio is conservatively positioned and maintains a large holding in the gold mining company as a hedge against further currency debasement.

"Our funds have had positions in gold since the tech bubble, when we discovered printing money was becoming more popular," comments Mr Asante.

Interestingly, in their latest fund fact sheet, the managers have expressed concern over the rapid growth of exchange-traded funds (ETFs), which has continued to build momentum with increasingly exotic, complicated and opaque funds being launched.

Source: Investors Chronicle, First State, *Morningstar

Performance figures as at 28 May 2010

Top 10 holdings (as at 30 April 2010)

Geographic Breakdown