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The AFI Aggressive portfolio has had an impressive six months thanks to a surge in emerging markets, with funds from this sector making up seven of the 10 best-performing funds.
The Adviser Fund Index (AFI) Aggressive portfolio has had an impressive six months. The horror at the end of 2008 is starting to recede and the index is again pulling away from the performance of the IMA Active Managed Sector and Apcims Growth. One major reason for this is the phenomenal performance of the emerging market sector.
The last three months in particular have seen outstanding growth. In the four months from the bottom in March, the FTSE Emerging All-Cap Index has gained over 60%, and peaked a couple of weeks ago with a gain of almost 70%.
Consequently, in the last six months, funds from this sector made up seven of the 10 best-performing funds in the Aggressive index and Balanced index, and five of the 10 best performing in the Cautious index.
Retail investors have seen the potential. The latest figures from the Investment Management Association saw a surge in these funds in May, as Global Emerging Markets saw a net inflow of pound 77.5m. This contrasts dramatically with the April figures, which saw net outflows of pound 243m, and is the biggest monthly net sales figure for the sector since October 2007.
The panellists did not join this flood with the rebalancing in May....