First State Global

ETHICAL

Q&A

ON FOOD

Investors have shown more interest in emerging market funds than any other asset class in Q1, according to Morningstar.

First State is considering moving Jonathan Asante's £4bn GEM Leaders fund out of the IMA Global Emerging Markets sector in order to combat capacity issues, Investment Week understands.

As the most popular emerging market equity funds are soft closing to stem inflows, wealth managers are being forced to look for alternatives beyond their usual top picks.

Over the past year just eight ethical funds have managed to beat the FTSE All Share index, according to IFA firm Barchester Green Investment.

Fund selectors have revealed the difficulties in allocating to Asia and emerging markets as some of the most popular retail funds close their doors to new investors.

First State is planning to launch a Worldwide Sustainability fund for David Gait later this year, Investment Week understands.

The £132m First State Global Property Securities fund has dominated the IMA Property sector over the last five years, being one of only two funds to make a positive return over that period, and has returned 84.5% since 2009.