Themes fuel emerging fund success

Theme and geographic asset allocation have both contributed to the best performing fund returns in the global emerging markets sector over the past three years. For the 36 months to February 2000 the average total return for the 28-strong Micropal unit trust sector was 12.54%. Those portfolios which were underweight Asia ahead of the 1997 crisis and timed their entry into technology and telecom stocks correctly last year have produced far higher figures. One such example would be the £14m Baillie Gifford Emerging Markets Growth Fund which managed a total return of 48.8% over the period....