GEM funds gaining traction on Cofunds

Global emerging market (GEM) funds are increasing in popularity as less risk-averse investors seek higher returns, suggests the latest monthly figures from Cofunds.

Funds in the sector grabbed 6% of net sales on Cofunds during October, compared to a year-to-date figure of 4%. This led to the sector rising to fourth in the monthly sales rankings on the back of renewed investor confidence. Emerging markets have appealed to investors as a result of their fast growth rates and a belief they will help lead the global economy out of recession, the platform says. "The GEM sector is interesting," says funds group relations manager Michelle Woodburn. "GEM is a key theme everyone is trying to drill into and when markets are on the up, as they have been ove...