GEMs defy risk to outperform other equities

Global emerging markets become only equity-based peer group to deliver positive returns over three years, in contrast to developed markets

Global emerging markets funds have long been considered at the high-risk end of the investment spectrum but the sector is the sole purely equity-based peer group to have actually delivered positive returns over the past three years. The average fund is up 5.61% over the three years to 11 May, in stark contrast to portfolios investing in the developed markets of Europe, Japan, the US and the UK, which have all posted double-digit losses. Indeed, the top-performing pair, the First State Investments Global Emerging Markets Leaders and Global Emerging Markets funds, are up 31.46% and 27.09%...