Risk rewarded, for now
STEPHEN CRANSTON: Emerging market funds prove to be good bet
For now the wind is blowing in favour of emerging markets funds
Emerging markets have certainly been in a sweet spot. If you had bought one of the three emerging market funds available in rand, the return in the year to date would have been between 15% and 19%, compared with about 9% from one of the stronger SA equity funds. Coronation Emerging Markets is the clear top performer for now, and fund managers Gavin Joubert and Suhail Suleman have won some mandates from overseas clients — though investors should not forget that it lost more than a fifth of its value in 2015. The wind is blowing in favour of these funds at the moment. The other choices are Old Mutual Emerging Markets, run jointly by Feroz Basa and Siboniso Nxumalo, and the Sim fund, run by Denker Capital’s Neal Smith. The MSCI emerging markets index rose 3.8% in the June quarter, double the developed index.
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