Emerging market equities have shown a very strong performance in 2016, significantly out-performing developed markets year-to-date. With a European Securities and Markets Authority (ESMA) 6 rating, these funds have a higher-risk profile than developed markets funds but also have more growth potential over a longer-term investment horizon.
The resurgent commodity and oil prices provided a catalyst for emerging markets this year and the generally dovish stance of central banks and diminishing expectations for US interest rate rises has also been constructive. If you are looking for some exposure to higher risk emerging market equities, you could also achieve higher returns.
Friends First has a range of three emerging market regional equity funds which are expected to achieve strong returns in the longer-term, based on the performance of equity markets. Although all the emerging markets funds available from Friends First give exposure to ‘global’ emerging markets, each has unique objectives and strategies and all have generated positive returns in euro terms this year-to-date.
The Friends First Range of Emerging Markets Equity Funds
Indexed Emerging Markets Fund
- Basic emerging markets fund, which aims to track the MSCI Emerging Markets Index through an SSgA managed fund.
- Provides broad exposure to emerging market equities.
KBI Emerging Markets High Yield Equity Fund
- KBI Fund Managers are specialists in high yield equities.
- Invests in high quality companies across the emerging economies of the world, which are paying sustainable, higher dividends relative to their industry peers.
Explorer Emerging Markets Fund
- LGM are the fund managers and are specialists in emerging market equity investments. LGM research companies with a long-term view and wait for the opportunity to buy high quality companies without overpaying for their inherent quality.
- Provides access to our best investment ideas through a concentrated, aggressively managed portfolio of shares in emerging markets.
The emerging markets funds are available as standalone fund options as well as featuring within a number of our Magnet and Compass range of portfolio funds. The Magnet and Compass range are ready-made portfolios, each designed with a particular type of investor in mind, making it easier for you to select the right investment for your needs.
The emerging markets funds and the Magnet and Compass Range are available across the Friends First suite of Pensions, ARF (Approved Retirement Funds), AMRF (Approved Minimum Retirement Funds) and Savings and Investment products.
For more information on the Friends First range of funds speak to your Financial Broker or visit our Fund Centre.
*An index created by Morgan Stanley Capital International (MSCI) that is designed to measure equity market performance in global emerging markets.