Trustnet readers were asked which single fund they would invest in today if they were given a lump sum. Of 200-odd respondents, the vast majority, 85 per cent, were private investors.
Aberdeen Emerging Markets invests directly and indirectly in emerging stock markets throughout the world. It was recently featured in a Trustnet Fund Focus.
Over the last five years the fund has been one of the top performers in the IMA Global Emerging Markets sector, returning 142 per cent, compared with 83 per cent from the sector average. Its performance over this period was second only to Aberdeen Global Emerging Markets Equity, which is run by the same team.
Alpha Manager Angus Tulloch’s First State Asia Pacific Leaders fund also proved popular. It invests in large and mid cap equities in the Asia Pacific region and over a five-year period it has returned 136 per cent.
According to data from Financial Express, Tulloch is the second-best performing manager in the entire IMA universe over five years.
Another emerging markets fund receiving attention from Trustnet readers is Neptune Russia & Greater Russia. Headed-up by Robin Geffen, another manager highly rated by Trustnet, the fund invests predominantly in Russian companies or businesses that derive a lot of their earnings from the region. Also recently featured in a Trustnet Fund Focus, over the last five years it has returned 91 per cent.
Performance of funds vs sector over 5-yrs
Source: Financial Express Analytics
Chris Spear, managing director of Spear Financial, thinks that investors holding a lump sum they don’t need immediate access to would be wise to look to emerging markets for growth.
"I spoke to a manager recently who said that if you’ve got long enough to invest then you might as well bung as much money as you can in an emerging market fund," he explained.
"If you are investing on behalf of a son or daughter, or perhaps a grandchild, and have 15 years to stay invested, then emerging markets funds offer the most compelling story."
The three funds picked in the survey are among the biggest in the sector by assets managed. The First State fund has AUM of £5.4bn while the Aberdeen and Neptune funds control £2.6bn and £600m respectively.
Other funds that proved popular included Invesco Perpetual’s Income and High Income funds and Edinburgh Investment Trust, all managed by industry star manager Neil Woodford.
Alpha Manager Graham French’s M&G Global Basics was also popular. The fund invests in companies operating in, or servicing, basic industries worldwide.