However, investors continued to search for the most popular names in the sector, Aberdeen Emerging Markets and First State Global Emerging Markets Leaders suggesting that investors have yet to find an alternative to sector’s dominant funds. Newton Asian Income also appeared in the top ten.
Morningstar OBSR analyst Oli Kettlewell, said that it is worth noting that investors will use Morningstar.co.uk not only to research investments to buy but also to support a decision to sell: “Investors were no doubt alarmed by the volatility in the emerging market asset class and therefore checking these popular funds.”
The most popular fund was Templeton Global Total Return for the second consecutive quarter. Manager Michael Hasenstab has a lot of emerging market bond positions, with Uruguay and Mexico bonds in his top-10 holdings. Surprisingly, BlackRock World Mining also made the list. The BlackRock commodities franchise has struggled in recent years as sentiment towards the resources sector has diminished.
The two new additions to the list over the previous quarter are both UK equity funds. The Cazenove UK Smaller Companies, run by Paul Marriage, has significantly outperformed its peers and its benchmark over the past 10 years, while the Standard Life UK Equity Unconstrained has also been a top performer in the IMA UK All Companies sector. Investors have been returning to UK funds as the economic recovery has taken hold.
The ten most searched-for funds in the third quarter of 2013 were: Templeton Global Total Return, First State Global Emerging Markets Leaders, Aberdeen Emerging Markets, Invesco Perpetual High Income. Newton Asian Income, Legg Mason Japan Equity, Cazenove UK Smaller Companies, BlackRock Global Funds – World Mining, Templeton Global Total Return, Standard Life UK Equity Unconstrained.
