A number of fund groups are on track for record-setting years, according to flow data provider EPFR Global. Emerging markets, US and global bond funds as well as global emerging market equity funds are likely to experience record inflows in 2010. Against a backdrop of soaring equity markets and rising risk appetite, September saw Japan Equity Funds snap an 11-week outflow streak, Latin America equity funds extend their longest winning run since the fourth quarter of 2009 and US equity funds enjoy their best period since late May and early June.
OFFSHORE EM FUNDS OUTDO UK OEICS
UK-domiciled emerging market funds are facing tough competition from offshore rivals after the latter was included in the Investment Management Association (IMA) performance league tables in the first quarter of this year. Analysis of Lipper performance data by HSBC Global Asset Management and Baring Asset Management shows that over the past three years to August 2010 at least eight of the top 10 funds specialising in a particular major emerging market have been domiciled offshore. HSBC AM said this has levelled the playing field and given investors more choice.
THREE FIDELITY FUND RATINGS ON HOLD
Morningstar has placed three Fidelity funds’ ratings under review following the departure of fund managers Brenda Reed and Ilario di Bon. The funds are: Fidelity Funds – Global Focus, Fidelity Global Focus and Fidelity Funds – Global Opportunities, which were rated superior. Morningstar’s Mark Laidlaw said the ratings all rested substantially on the presence of the previous fund managers: “Incoming manager Amit Lodha [Fidelity Funds – Global Focus and Fidelity Global Focus] has not run a diversified offering before and we’ll need to meet with him to determine our conviction in his capabilities.”