Investment in emerging markets proved popular during October, according to the investment platform provider Cofunds.
Cofunds said six funds with high exposure to emerging market economies were currently in its top 50 funds by net sales.
These funds, including global emerging market funds, specialist and global bond funds, proved popular with advisers. The Aberdeen Emerging Markets fund was eighth in the sales top 50, but funds in the cautious managed sector were the most popular area, with four funds in the top five.
Standard Life’s Global Absolute Return Strategy fund had the most sales on Cofunds during October. UK equity income funds saw their popularity dip with eight per cent gross sales but with indications that investors were withdrawing from funds net sales were 1 per cent.
Manager of group fund relations at Cofunds, Michelle Woodburn, said global sectors had experienced a ‘healthy level of adviser interest’.
Figures indicate that advisers are ‘seeking income, in part, from the global arena, with funds such as M&G Global Dividends and Newton Higher Income’ proving popular, she added.
Some commentators and investors have warned that enthusiasm for emerging market opportunities could be creating an investment bubble, while others, such as investment managers BlackRock argue that companies with emerging market exposure offer opportunities to enhance returns.
Fund managers from the firm said on 10 November that small and medium sized firms with exposure to developing economies offer the potential for strong returns.
Head of the firm’s small and mid cap team, Richard Plackett, said: “The economic outlook points to faster growth in emerging markets, which have lower levels of debt. Added to this, new products always emerge first in the small and mid cap space so this sector is at the forefront of innovation and stocks are poised for growth.”
© Fair Investment Company Ltd