Press Release

Moneyspider.com

PRESS RELEASE

FOR IMMEDIATE DISTRIBUTION 
 

6 November 2007 

EMERGING MARKETS STARS PRODUCE UP TO FIVE TIMES HIGHER RETURNS 

RUNAWAY performing emerging market equity funds have absorbed more than £2.4 billion in the past three weeks, as investors continue to bail out of the underperforming developed market funds.* 

But, as global investment markets go through yet another turbulent phase, new research from fund analyst Moneyspider.com reveals that even the best performing funds from the developed world haven't been able to keep up with the outstanding returns that private investors have achieved over the past five years from emerging markets funds.  

Many investors would have done much better switching from their more familiar funds invested in the developed markets to those from emerging markets which have delivered up to five times higher returns (see research tables below). 

"Emerging market funds have been strongly resilient to the recent credit crunch and stock market volatility, though it should be remembered that they are still high-risk high reward and only suitable as long-term investments," said Moneyspider.com's Tony Ahearne. 

"Emerging markets have come a long way since their inherent difficulties in the1990s and today improved political stability in many hitherto no go parts of the world combined with rising exports and a higher degree of economical autonomy has manifested themselves in the strong performances of the funds. 

"Earnings growth expectations for emerging markets have been moving up while those in many developed markets have been moving down. It would appear that investors may be focusing less on risk and more on growth. 

"The fact that, on the Moneyspider.com scale of A to E, not a single emerging markets fund has a rating below B, speaks for the strength of the sector as a whole," added Ahearne. 

Top of the emerging markets sector is the Gartmore China Opportunities Fund, the biggest and longest running of the Greater China funds, which has a rating of A and a near perfect Moneyspider.com score of 99 per cent. An initial investment of £5,000 made 5 years ago will have produced an exceptional gain of nearly £27,000, a staggering 537 per cent rise.** 

The Jupiter Emerging European Opportunities Fund has produced similarly phenomenal growth of £24,000 on a £5,000 investment made 5 years ago.** 

The fund, mainly investing in Russia, Turkey and Poland, has been consistently outperforming the emerging markets sector benchmark, and is rated A on the Moneyspider.com scale. 

By comparison, the best performing fund in the Europe excluding UK sector, the Artemis European Growth Fund, will have seen a growth over the same five year period of well below £12,000 on the same £5,000 investment: less than half of either the Gartmore or Jupiter funds.  

There is worse news for investors in the North American sector funds. The sector's top performer, the B-rated Martin Currie North America A Fund, will have barely produced a £4,000 profit after 5 years.** 

"These findings really show that it pays off to keep a close eye on the performance and ratings of funds in different sectors and not just stick religiously to areas of the world you are familiar with," said Ahearne. 

"On another level it's also well worthwhile closely monitoring the funds within each sector to spot the top rated ones and check how your own fund performance compares.  

Moneyspider.com offers a comprehensive yet easy-to-understand fund monitoring service with personalised reports including valuations and ratings on each fund updated on a daily basis. 

"There will be many more investors who may consider dipping their toes into emerging markets. And with a performance tracker service such as Moneyspider.com they can keep a watchful eye on how their funds are performing compared with others in both the same and different sectors," added Ahearne. 

* Source: FTfm 22 October 2007

** Source: Moneyspider.com/Financial Express 12 October 2007 

Ends- 

Editor's notes

Moneyspider was launched in April 2004 and is a totally independent investment research and information company for private investors. Moneyspider constantly monitors all 2,000 or so funds available to UK investors and provides online personal reports that are updated on a daily basis showing current valuation and performance of all funds in one place.

The Moneyspider Rating® provides a unique assessment of the performance of each fund measured against four key parameters:

• Sector ranking: a comparison with all other funds in the same sector as your fund (based on the sector definitions used by the Investment Management Association).
  
• All funds ranking: a comparison with all other 2000 or so Unit Trusts and Open Ended Investment Company funds available to UK investors.
  
• FTSE 100: a comparison of the total return of the fund with the total return of the FTSE 100 index (comprising the UK's 100 largest companies), providing a consistent benchmark for each fund.
  
• Cash: a comparison of the fund's performance with the return from an equivalent amount deposited in a 90 day non-high interest access account.

Moneyspider is an appointed representative of Anthony, Bryant & Company (Investment Consultants) Limited of 25 Eccleston Square, London SW1V 1NS, which is authorised and regulated by the Financial Services Authority. The contents of this press release are not intended, and should not be construed as, advice, a recommendation or as an inducement to buy or sell any investment. Moneyspider relies on information regarding investments that is provided by third parties and accepts no liability (including that arising from negligence) for the accuracy of such information.