It was a mixed bag for emerging market funds in July with Latin American funds among the strongest performers in the Investment Association universe, but China funds struggled.
According to FE, four of the top five funds last month were LatAm funds with the Neptune Latin America fund posting the strongest returns out of the group, rising 14.5%.
This was closely followed by the Scottish Widows Latin America fund, which returned 13%, while the Aberdeen Latin America fund and Invesco Perpetual Latin America fund were up 12.9% and 11.9% respectively.
This was versus 9.9% for the MSCI Emerging Markets Latin America index, which was impacted at the end of the month by profit taking and a string of poor corporate results.
Ben Yearsley, director of Shore Financial Planning, commented: "LatAm funds were the clear winners last month occupying four of the top five positions in the IA fund universe.
"Despite this, global data indicates investors are pulling money out of Latin American equities for much of the last two months."
Yearsley said the strength of the US economy was a key driver but warned the rising rate environment and resulting strong US dollar would put pressure on dollar-dependent countries.
"President US Donald Trump is both saint and sinner! His tax cuts have pushed the US economy into overdrive, leading to three consecutive monthly gains for the S&P 500," he continued.
"On the flipside, Trump's continued assault on trade and tariffs continues to knock the shine off markets. It feels like one step forwards, two steps back."
The top-performing fund in July was the MFM Junior Oils fund, which returned 18.1% following continued strength for oil prices with Brent Crude trading at $73 a barrel.
"The MFM Junior Oils fund beat the lot, Yearsley said. "Many oil minnows severely lagged the sustained oil price rise and are only now playing catch up as oil seems to be stabilising in the $70+ a barrel range for Brent Crude."
There was also variety in the worst performing funds last month with the Invesco Perpetual Japanese Smaller Companies fund seeing largest drop of 6%.
There were a number of Chinese funds in the bottom ten after the Hang Seng returned -0.45%, the only major index to fall in July.
The Fidelity China Consumer fund fell 3.3% while the First State All China fund and Quilter China Equity fund declined 3.3% and 3.1% respectively.
Yearsley commented China's ongoing trade war with the US was "clearly" having an impact on the economy which at the same time was dealing with slowing growth and increasing debt.
Last month, the Chinese government vowed retaliation in response to Trump's $200bn trade tariffs threat on Chinese goods, claiming it will "take comprehensive quantitative and qualitative measures".
"Attempts to rebalance the economy may be taking a backward step as news emerged this week of possible increased infrastructure spend and some fiscal or monetary easing," he added.