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The asset class where no manager lost money

Hundered_percentAll emerging market equity managers that are measured on a key database produced positive returns in the last quarter of 2017, capping three years of generally good category performance.

Camradata figures show the spread between returns was just over 11.6%, with the lowest at 1.05% for the period, and the highest return at 12.74%.

Over three years managers either performed positively or at least broke even, with returns ranging from 2.03% to 19.42%.

Leading the pack over three years for core all-cap emerging market equities was the Artisan Emerging Markets Composite strategy, which is managed by Artisan Partners, while Hermes, BlackRock and Principal Global Investors also gave “stand-out” performance, Camradata said.

Assets under management (AUM) in the emerging market universe increased by $30.8 billion (€24.8 billion) in the final quarter, to land at $553.2 billion.

Global equities, meanwhile, increased their AUM by $11.5 billion during the fourth quarter, putting their end-of-year tally at $762.6 billion.

However, investors reduced their global equity allocation in the closing months by $7.8 million and Camradata noted the category had not seen any positive inflows for over a year.

Camradata, which provides data and analysis for institutional investors, published the data for five asset classes in total, including diversified growth funds, multi-sector fixed income and emerging markets debt.

Sean Thompson, managing director at Camradata, said: “In emerging markets, South Africa was the best performing country, with India and South Korea also generating strong returns over the period.”

He added that there was still strong appetite for emerging market fixed income as China, Indonesia, Nigeria and Pakistan had all issued bonds.

The data also shows that diversified growth funds had 36 months of continual asset growth, amounting to £188.7 billion (€216 billion) of AUM, and 95.7% of products achieved break-even or positive performance in the final quarter.

“Our latest quarterly investment reports paint a largely positive picture for the end of 2017, with equity markets performing well outside Europe and stronger than predicted economic activity in the USA, following the approval of the long awaited tax bill,” Thompson said.

*Camradata is the owner of Funds Europe Magazine. The acquisition was announced in December 2017.

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