‘Hot’ money fails to slow emerging market inflows
Fund managers are devoting considerable resources to the emerging markets sector despite strong returns attracting ‘hot’ money to the sector within some countries, according to a Standard&Poor’s review.
This indicates that the managers will remain committed even when the current high level of investor interest abates, suggesting emerging market equities is not just a faddish asset class,” S&P fund analyst Tara Bell said.
The managers in the S&P 2007 emerging markets review consider the sector a “viable portfolio proposition for the long term”, she said.
The review found that there has been no significant increase in new products launched in the sector in 2007, nor, conversely, rationalisation of existing ones, Bell added.
It found that new products introduced by managers have tended to be broader, regional rather than single-country, offerings, with the exception of Fidelity Investments (Fidelity), which offers stand-alone India and China products as part of its regional suite.
The 2007 review examined a total of 16 managers (some managers are represented in more than one peer group), with S&P star ratings applied to 40 funds.
Recommended for you
A strong demand for core fixed income solutions has seen the Betashares Australian Composite Bond ETF surpass $1 billion in funds under management, driven by both advisers and investors.
As the end of the year approaches, two listed advice licensees have seen significant year-on-year improvement in their share price with only one firm reporting a loss since the start of 2025.
Having departed Magellan after more than 18 years, its former head of investment Gerald Stack has been appointed as chief executive of MFF Group.
With scalability becoming increasingly important for advice firms, a specialist consultant says organisational structure and strategic planning can be the biggest hurdles for those chasing growth.
