Comparing the performance of open and closed ended funds is difficult, given the effect that widening and narrowing discounts can have on the share price. Such movements are outside the control of the managers.
However, looking at NAV total return – with dividends reinvested – gives us a fairer comparison.
Our data shows that two emerging market trusts – Utilico and JPM Global Emerging Markets Income – have produced comparable figures to the well-known First State and Aberdeen funds that lead the pack.
First State Global Emerging Markets Sustainability has the best figures of any fund on the list, having made 41.58 per cent over the past three years as its MSCI Emerging Markets benchmark has made 13.71 per cent.
Performance of fund versus benchmark over 3yrs
Source: FE Analytics
The £284m portfolio, which has five FE crowns, is managed by FE Alpha Managers David Gait and Millar Mathieson. Unfortunately, it was soft-closed in 2011.
Our data shows the £383.6m Utilico Emerging Markets trust has given the fund a good run for its money in recent years, having returned 41.1 per cent in NAV total return over the past three.
Managed by Charles Jillings and Duncan Saville, the trust focuses on infrastructure and utility sectors, defensive areas that have seen strong demand in troubled markets.
It is yielding 3.3 per cent and in share price terms has made 46.84 per cent in the period in question, although it is still sitting on a discount of 9.6 per cent, according to the AIC.
Performance of trust versus index over 3yrs
Source: FE Analytics
The third portfolio on the list is Aberdeen Global Emerging Markets Smaller Companies, which benefits from being in a sector – smaller companies – which has greater growth potential.
However, its returns of 40.1 per cent are better than the few other emerging market smaller companies options out there. There are no closed-ended funds in this space.
NAV TR performance of trust versus funds over 3yrs
| Fund | Sector | 3yr |
|---|---|---|
| First State - Global Emerging Markets Sustainability | IMA Global Emerging Markets | 41.58 |
| Utilico Emerging Markets | IT Global Emerging Markets | 41.1 |
| Aberdeen Global - Emerging Markets Smaller Companies | IMA Global Emerging Markets | 40.19 |
| First State - Global Emerging Markets Leaders | IMA Global Emerging Markets | 39.74 |
| First State - Global Emerging Markets | IMA Global Emerging Markets | 38.54 |
| SJP - Global Emerging Markets | IMA Global Emerging Markets | 38.53 |
| JPM Global Emerging Markets Income Trust | IT Global Emerging Markets | 38.3 |
| McInroy & Wood - Emerging Markets | IMA Global Emerging Markets | 30 |
| Charlemagne - Magna Emerging Markets Dividend | Global Emerging Markets | 29.34 |
| Somerset - Emerging Markets Dividend Growth | IMA Global Emerging Markets | 27.78 |
| Aberdeen - Emerging Markets | IMA Global Emerging Markets | 23.72 |
| Aberdeen Global - Emerging Markets Equity | IMA Global Emerging Markets | 22.99 |
| Fidelity - Institutional Emerging Markets | IMA Global Emerging Markets | 20.23 |
| JP Morgan Emerging Markets | IT Global Emerging Markets | 18.8 |
| Genesis Emerging Markets | IT Global Emerging Markets | 17.08 |
| Invesco Perp - Emerging Countries | IMA Global Emerging Markets | 14.3 |
| Lazard - Emerging Markets | IMA Global Emerging Markets | 13.62 |
| JPM - Emerging Markets Small Cap | IMA Global Emerging Markets | 13.17 |
| JOHCM - Emerging Markets | IMA Global Emerging Markets | 13.01 |
| Somerset - Global Emerging Markets | IMA Global Emerging Markets | 12.57 |
First State Global Emerging Markets Leaders and First State Global Emerging Markets, both soft-closed, have produced similar returns, as has the SJP portfolio managed by Jonathan Asante to a similar mandate.
JP Morgan Global Emerging Markets Income, managed by Richard Titherington, is up with this pack, having produced returns of 38.3 per cent in NAV total return terms over three years.
Like Utilico, this trust invests in the defensive, dividend paying parts of the market, and is currently yielding 3.9 per cent.
High demand has pushed its shares onto a premium of 2.6 per cent, although over three years the share price returns have been slightly lower than the NAV numbers, at 35.08 per cent, according to FE Analytics.
Performance of trust versus index over 3yrs
Source: FE Analytics
The trust has large overweight position in the Telecoms sector, and is significantly overweight consumer discretionaries and industrials.
McInroy & Wood Emerging Markets is the first open-ended fund on the list not managed by either First State or Aberdeen.
The £45.5m fund has made 30 per cent over three years while the MSCI Emerging Markets index has risen just 13.71 per cent.
Performance of fund versus index over 3yrs
Source: FE Analytic
The remainder of the top 20 funds in terms of NAV total return performance are open-ended, with two exceptions.
JP Morgan Emerging Markets has made 18.8 per cent in NAV total return terms, while Genesis Emerging Markets has made 17.08 per cent.
A number of income funds also come near the top of the list, with Charlemagne Magna Emerging Markets Dividend making 29.34 per cent and Somerset Emerging Markets Dividend Growth making 27.78 per cent.