Heightened appetite for risk drives interest in GEM funds

Emerging markets are seen to be leading the global recovery as sector outperforms

Over the past 12 months the global emerging markets sector has outperformed all other equity-based peer groups and is attracting strong investor interest. This is despite the perception of the sector as being relatively high risk. This rise in popularity has been driven by the view emerging market economies may lead the global recovery, and by the heightened risk appetite of investors. According to Morningstar, the average fund in the IMA Global Emerging Markets sector is up56.5% over one year to 26 April. Smaller companies funds have led the charge over this time period. Top of th...