“This data will only spur investor desire to see President Dilma Rousseff ousted in October’s elections.”
Fund performance
Perhaps not surprisingly in such an uncertain economic environment the best performing funds in the IMA Global Emerging Markets sector for the year to date to 30 May have been those focusing on smaller companies.
Of the top five funds in the sector three – the Somerset Emerging Markets Small Cap, the JPM Emerging Markets Small Cap and the Templeton Emerging Markets Smaller Companies – have a focus on the smaller end of the market.
The disparity in returns in the sector, also illustrates the difficulties of investing in such a diverse market with the Carmignac Portfolio Emerging Discovery delivering a positive 8.53 per cent compared to the Neptune Emerging Markets with a loss of 3.28 per cent in the same time period.
With the economic environment likely to remain volatile for some time to come, including presidential elections in Indonesia, Turkey and Brazil still to come this year, it has never been more important to understand the underlying investments in your funds.
