James Carthew: These top-performing trusts have a lot further to run
Fidelity Emerging Markets and Templeton Emerging Markets trounced their peers with high returns last year, and show no signs of slowing.
Global emerging markets trusts have had a great run recently – well most of them anyway. Top of the pack are Fidelity Emerging Markets (FEML) and Templeton Emerging Markets (TEM), which have returned 75.5% and 62.8% respectively over the past 12 months.
Regretfully, I do not hold either of these, although I do have the next best performer JPMorgan Emerging Markets Dividend Income (JEMI), which was up 44.5%.
The top two trusts have beaten the best of the China trusts, with India trusts actually losing money for shareholders. Of the pan-Asian trusts, only Pacific Horizon (PHI) comes close, with a return of 54.8% – so how have FEML and TEM done it?
Some discount narrowing has helped, especially for TEM, but both trusts still trade on discounts for now, 8.7% for FEML and 8.5% for TEM.
FEML invests across the market cap spectrum and includes some frontier markets as well as emerging markets within its remit. Its portfolio is…. read more here