Orbis Emerging Markets Equity, JPM Emerging Markets and Lazard Emerging Markets are among the handful of funds in the IA Global Emerging Markets sector’s top quartile both since the start of the war in Iran and across 2025, Trustnet research shows.
The Iran conflict caused a sharp reversal in some of last year's most successful trades, with investors rotating out of the assets that delivered strong returns in 2025. Emerging market equities have been among the hardest hit, unwinding some of the gains that made the asset class one of last year’s best performers.
Since 28 February – when the US and Israel started their coordinated strikes on Iran – the MSCI Emerging Markets index has fallen 9.8% in sterling terms, compared with a decline of 5.7% in the developed markets-focused MSCI World.
Performance of indices since 28 Feb 2026
Source: FE Analytics. Total return in sterling between 28 Feb and 25 Mar 2026
This has obvious consequences for funds. The average fund in the IA Global Emerging Markets sector has lost 9.5% since the start of the Iran conflict, making it one of the weakest peer groups in the Investment Association universe. None of the sector’s funds have made a positive return over this period.
In the sector, 28 of the 45 funds that made top-quartile returns in 2025 are in the third or fourth quartile since the war in Iran began. Conversely, 31 previously bottom-quartile funds have moved into the first or second quartile since 28 February.
However, there are 10 emerging market equity funds that made first-quartile returns last year and have managed to hold onto this since the start of the conflict. They can be seen below, ranked by their returns since the war’s beginning.
| The emerging market funds in the top quartile over the Iran conflict so far and in 2025 | ||||
| Fund | Total return since 28 Feb | Total return in 2025 | ||
| Orbis Emerging Markets Equity | -6.05% | 42.75% | ||
| Ninety One Emerging Markets Equity | -6.48% | 27.41% | ||
| Fiera Capital Europe Fiera Emerging Markets | -7.13% | 34.89% | ||
| JPM Emerging Markets | -7.29% | 30.69% | ||
| Dodge and Cox Emerging Markets Stock | -7.66% | 29.31% | ||
| Quilter Investors Emerging Markets Equity Growth | -7.74% | 29.37% | ||
| Lazard Emerging Markets Equity | -7.85% | 31.79% | ||
| Principal GIF Origin Global Emerging Markets | -8.38% | 40.21% | ||
| Lazard Emerging Markets | -8.41% | 32.43% | ||
| FP Carmignac Emerging Markets | -8.63% | 28.89% | ||
Source: FE Analytics. Total return in sterling between 28 Feb and 25 Mar 2026
The Orbis Emerging Markets Equity fund is at the top of the list, thanks to its 6.1% loss since 28 February – the fifth best in the sector. This follows a return of 42.8% last year, which was the peer group’s second highest.
Managed by Stefan Magnusson and Stanley Lu, the £2.5bn fund has a contrarian approach (like all of Orbis’ strategies) and aims to outperform through a concentrated portfolio of value stocks.
Explaining the process, the managers said: “The focus is on buying businesses at sensible prices and owning them for a long time. Periods of weak performance are often the price paid for that discipline. Conviction is measured by asking ourselves whether we would be comfortable owning a business even if the stock market were to close tomorrow and not reopen for the next five years.
“We own a focused collection of businesses, diversified across countries and industries. Capital is concentrated because superior, undervalued businesses we truly understand and trust are rare, not because outcomes are predictable. This approach suits investors who value patience and selectivity over activity.”
Top holdings at present include Hong Kong–based conglomerate Jardine Matheson, tech giant Taiwan Semiconductor Manufacturing and South Korean financial services company Kiwoom Securities, while the portfolio is overweight China/Hong Kong, Europe and the Middle East and Asia.
Most of the funds on the above list might be off-the-radar for some investors, as they have assets under management of less than £500m. Conversely, the largest is the £2.6bn JPM Emerging Markets fund.
Managers Austin Forey, Leon Eidelman and John Citron look for high-quality companies with superior and sustainable growth potential, then aim to hold them for the long term. Taiwan Semiconductor Manufacturing, semiconductor company SK Hynix and tech group Samsung Electronics are its top holdings.
Analysts at Rayner Spencer Mills Research said: “The fund’s natural beta is below one, offering some downside protection, but the fund will not escape sell-offs in emerging markets, which are generally higher beta against their developed market peers. Recovery phases from recessions where low quality or cyclicals thrive would see the fund underperform.”
Lazard Emerging Markets is highlighted by Square Mile Investment Consulting and Research for an approach that “reflects the heightened risks of investing in emerging markets”. James Donald and his team look for companies trading on attractive valuations but with high or improving financial profitability.
Square Mile analysts said: “The manager's historical record of consistent outperformance of the broader market has generally been strong over the past 20 years. It is only in years where the market was driven by higher growth businesses that the fund has struggled, as the manager's relative value approach was a headwind in that environment.”
FP Carmignac Emerging Markets is the only one of the 10 emerging market funds with first-quartile performance in both 2025 and since the start of the Iran conflict to have an FE Alpha Manager working on the portfolio. Xavier Hovasse, head of emerging equities at Carmignac, holds the rating; he runs the portfolio with Naomi Waistell.
When it comes to the more focused emerging market sectors, three IA China/Greater China funds made top-quartile returns in both 2025 and since the Iran conflict started. They are Amundi MSCI China ESG Selection Extra, Invesco ChiNext 50 UCITS ETF and UBS Solactive China Technology UCITS ETF.
In IA Asia Pacific Excluding Japan, another two funds – Fidelity Emerging Asia and iShares Pacific ex Japan Equity Index – made the shortlist as did Franklin FTSE India UCITS ETF and PineBridge India Equity from IA India/Indian Subcontinent. None from the IA Latin America sector are first quartile in both periods.