Eastern European fund upgraded one rating band by Standard and Poor's
The Schroder Eastern European fund was the only one to be upgraded to AAA status, an improvement of one rating band on the previous year, following Standard & Poor's sector review of Eastern Europe, Middle East and Africa (EMEA) funds.
S&P's report on the EMEA sector covered one closed-ended and 14 open-ended funds domiciled in the UK and offshore.
Funds that obtained an AA rating include the Baring Emerging Europe Trust and the Templeton Eastern Europe Fund.
Six funds achieved first time coverage in this year's report, one of which was the Cayman Islands domiciled open-ended investment company Brunswick Russian Growth fund, which has been given an AA rating.
Commenting on recent developments in the sector, Peter Fuller, S&P's lead analyst for EMEA funds, said: 'Generally, fund managers interviewed for this report see the medium-term outlook for these specialist markets as dependant on the duration of the US economic downturn.
'If it is short-lived, they expect confidence to return, but they stress the importance of astute asset allocation and stock selection because they believe there could well be significant divergence in the pace of recovery.'
Linda-Jane Coffin, S&P's head of equity research, said: 'We have seen cuts in both the number of funds and their total assets, reflecting some investor disinvestment.
However, groups such as Barings, JP Morgan Fleming, Robeco and Schroders have all stayed the course in these markets over a challenging year and this is reflected in some of the strongest relative performances in the sector.'
According to S&P, the suffering of the EMEA markets over the past 12 months, as reflected in US dollar losses of around 41% for the average regional portfolio, has forced some to funds cease trading.
Mentioned in the report was the closing of Martin Currie's Near East Opportunities fund through lack of investor interest, while for similar reasons the specialist Hungarian Investment Company fund has merged into its broader-based relative, the Govett Emerging Europe fund.
The key reason for the collapse in emerging Europe share prices was the slowdown in the US.
The S&P report said that liquidity is crucial for investment in these markets and, in emerging markets, liquidity rests largely with foreign investors.
Reflecting concerns over the potential implications of the slowing US economy, the main regional index benchmarks slumped between 27% to 46%, in dollar terms.
These setbacks offset much of the strong gains achieved by the markets over the previous year, leaving the indices more than 20% down on a three year view.
Fuller said that the fallout in technology stocks was a substantial ingredient of the markets trouble.
He said: 'Telecoms represents a significant proportion of all EMEA markets. In most there is at least one large index component stock drawn down from this sector that makes it almost mandatory for a fund to reflect the market.
'Matav in Hungary, Polski telecom in Poland and Rostelcom in Russia are all good examples.'
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