HEAD-TO-HEAD: Fidelity vs M&G
By Francis Nikolai Acosta, 18 May 18
FSA compares the Fidelity Emerging Markets Fund and the M&G Global Emerging Markets Fund.
Lena Tsymbaluk, Morningstar
Global emerging market equities did well in 2017 and were one of the best performing markets during the year, according to Lena Tsymbaluk, London-based analyst for manager research at Morningstar.
In 2017, the MSCI Emerging Markets Index returned 27.91% and outperformed the MSCI All Country World Index (24.62%), according to FE data.
But year-to-date the EM index is flat (0.31%) and it has underperformed the MSCI AC World (1.82%). Investors appear to be turning cautious on emerging markets, especially since valuations have gone up, Tsymbaluk said.
However, on the buy side, data collected by FSA shows an increased interest in global emerging markets from fund selectors in Asia. Fund Selector Asia Asset Class Research shows that 60% of respondents said they would add global emerging markets to their allocation in the next 12 months, compared to only 37% in December.
Against this backdrop, FSA compares two global emerging markets equity funds: the Fidelity Emerging Markets Fund and the M&G Global Emerging Markets Fund.