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Out of 166 Global Emerging Market funds analysed, only 22 achieved a top-performing 4 or 5 star rating based on consistent outperformance over 1, 3, and 5 years.
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A total of 63% of funds delivered below-average returns, highlighting the importance of robust fund selection in this highly varied sector.
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The Redwheel Next Generation Emerging Markets Equity Fund was the best performer over 5 years, returning 197.40% compared to the sector average of 32.87%.
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Regular portfolio reviews can help identify underperforming holdings and ensure emerging market exposure remains aligned with investor objectives and risk tolerance.
Global emerging markets are often seen as a source of higher long-term growth, driven by expanding populations, rising consumption, and rapid economic development. But while the potential is well recognised, outcomes for investors can vary significantly depending on the funds they hold.
In this report, we analysed the performance of 166 Global Emerging Market funds to assess how consistently they have delivered for investors. Our findings highlight a clear divide between the small number of funds that have produced strong, sustained results and the majority that have struggled to outperform.
This article identifies the 10 funds that have consistently ranked among the best in their sector over the past 1, 3, and 5 years, offering insight into the strategies that have delivered competitive returns in this complex and often volatile area of the market.
Global Emerging Markets Fund Performance
For this report, we reviewed the performance and sector ranking of 166 Global Emerging Markets funds. Each fund was evaluated over 1-year, 3-year, and 5-year periods, and assigned an overall performance rating based on its consistency in outperforming sector peers.
Our findings show that just 22 of the 166 funds achieved a top-performing 4 or 5-star rating, with only 10 earning the highest 5-star score. These standout funds demonstrated consistent, above-average returns across multiple timeframes, highlighting their ability to deliver robust relative performance within the sector.
In contrast, a large proportion of funds delivered consistently poor performance. Of the 166 funds analysed, 49 were rated 1 star and a further 55 received 2 stars, reflecting sustained underperformance when compared to their sector peers. In total, 63% of the funds reviewed produced below-average returns across all measured periods.
This variation in outcomes reinforces the importance of careful fund selection, particularly within the global emerging markets sector, where performance can be highly sensitive to market shifts, regional developments and manager strategy.
Top Performing Global Emerging Markets Funds
The following 10 funds have demonstrated consistent outperformance across multiple timeframes. Each has ranked among the top performers in the IA Global Emerging Markets sector, providing investors with greater confidence in their long-term suitability.
The table below lists 10 of the top-performing Global Emerging Market funds over the past 1, 3 & 5 years.
Each of these funds has been awarded a top 4 or 5 star rating based on their performance relative to sector peers.
The table above outlines the annual performance of each of the 10 funds, clearly highlighting the variation in returns and the degree of volatility across different market conditions.
1. Redwheel Next Generation Emerging Markets Equity Fund
This fund was launched in 2019 and aims to deliver long-term growth by investing in some of the smaller and less commonly held emerging and frontier markets. Rather than following a market index, the managers select companies they believe are undervalued and have strong long-term potential.
It invests in countries that are often overlooked by other funds, including Indonesia, the Philippines, Mexico, the UAE and South Africa. The fund focuses on three main areas: countries that export natural resources, regions that support low-cost manufacturing, and local businesses benefiting from growing tourism and domestic spending.
The fund has delivered strong results. Over the past year, it returned 5.39%, ahead of the sector average of 3.68%. Its 3-year return of 35.77% ranked 2nd out of 157 funds, and its 5-year return of 197.40% ranked 1st out of 136 - far higher than the average return of 32.87%.
With over £900 million in assets, the fund has attracted increased interest. Strong performance has been supported by investments in financial companies, natural resource firms and property markets. The fund managers focus on finding companies they believe are good value, which has helped reduce losses in weaker markets and boost gains during recoveries.
2. Invesco Global Emerging Markets (UK) Fund
This fund aims to grow investors’ money over the long term by investing mainly in companies based in, or closely connected to, emerging markets around the world. It focuses on businesses that generate strong cash flow, have solid financial foundations, and are often overlooked by other investors.
Rather than following a market index, the fund managers carry out in-depth research to find companies they believe are good value and have the potential to grow steadily over time.
Its results have been consistently strong. Over the past year, the fund returned 9.05%, ranking 11th in its sector. Its 3-year return of 29.58% placed it 7th out of 157 funds, and over 5 years it delivered a return of 77.90%, well ahead of the sector average of 32.87% and ranking 3rd out of 136 funds.
The fund has benefited from investments in leading companies across Asia, including technology, banking and consumer brands in Taiwan, South Korea and China. Well-known names such as Taiwan Semiconductor, Samsung Electronics and HDFC Bank have been key contributors to its strong performance.
With more than £670 million under management, this fund has built a strong reputation for investors seeking a well-diversified way to access growth in global emerging markets.
3. Artemis SmartGARP Global Emerging Markets Equity Fund
This fund invests in a wide range of companies across major emerging markets, including China, India, Brazil, South Korea, Taiwan and Thailand. It aims to grow investors’ money over the long term by selecting companies that are undervalued but have strong growth potential.
The fund uses a data-driven approach called SmartGARP, which looks for businesses with low share prices, growing profits and improving financial health. This method helps the fund managers avoid emotional decision-making and focus on opportunities that may be overlooked by others.
The fund has delivered strong results. Over the past year, it returned 4.81%, slightly ahead of the sector average of 4.15%. Over 3 years, it returned 31.41%, ranking 4th out of 157 funds. Its 5-year return of 72.35% also ranked highly, placing 6th out of 136 and more than doubling the sector average of 32.87%.
With more than £1.34 billion in assets, this fund has earned strong support from investors and has proven effective at identifying growth opportunities in a fast-changing part of the market.
4. M&G Global Emerging Markets Fund
This fund invests in a wide range of companies based in developing economies, with the goal of delivering both long-term growth and income. It focuses on businesses that are profitable, well-managed, and offer good value - rather than simply following a market index.
At least 80% of the fund is invested in companies that are either based in, or generate most of their revenue from, emerging markets. The fund manager actively selects companies they believe have the potential to grow in value over time, based on detailed research into their financial strength and long-term prospects.
The fund has delivered strong performance across different time periods. Over the past year, it returned 4.51%, ahead of the sector average of 3.68%. Over 3 years, it returned 24.96%, and over 5 years it achieved 71%, ranking 6th out of 136 funds and more than doubling the sector average of 32.87%.
It invests across a mix of regions and sectors, including finance, technology, and consumer goods. Key investments in well-known companies such as Taiwan Semiconductor, Samsung Electronics, HDFC Bank and Prosus NV have supported long-term results.
With over £677 million in assets, this fund is well-established and offers investors a broad approach to capturing growth opportunities across global emerging markets.
5. Lazard Emerging Markets Fund
Launched in 2014, this fund aims to grow investors’ money by investing in established companies across emerging markets. It looks to outperform the wider emerging markets sector but with typically less volatility than the average fund.
The fund mainly invests in large businesses worth more than $3 billion, and also includes some companies based outside emerging markets if they earn most of their income from those regions. This broader approach allows the fund to access strong businesses linked to emerging market growth, even if they are listed elsewhere.
Over the past year, the fund returned 8.77%, well above the sector average of 3.68%. Its 3-year return of 30.91% ranked 5th out of 157 funds, and over 5 years it returned 63.31%, placing it 9th out of 136 funds and nearly doubling the sector average of 32.87%.
Its performance has been driven by careful selection of well-managed companies, combined with supportive market conditions including rising commodity prices and stronger local currencies. The fund has also benefited from long-term trends such as urban growth, higher consumer spending, and economic development in emerging regions.
With a focus on larger, more stable companies, this fund may suit investors who want exposure to emerging markets but prefer a lower level of risk than some higher-growth alternatives.
6. FSSA Global Emerging Markets Focus Fund
This fund aims to deliver long-term growth by investing in a focused group of high-quality companies across emerging markets. At least 70% of the portfolio is invested in large and medium-sized businesses that the fund managers believe have strong financials and good long-term growth potential.
The fund also invests in companies listed in developed markets if they earn most of their revenue from emerging economies. These businesses typically have a market value of over $1 billion and are chosen for their ability to grow steadily over time.
Over the past year, the fund returned 8.54%, ranking 16th out of 166 funds. Its 3-year return of 27.98% placed it 9th in the sector, and over 5 years it returned 56.43%, well above the sector average of 32.87%. These results make it one of the most consistent performers in the IA Global Emerging Markets sector.
The fund’s strong performance is supported by focused investments in well-known companies across China, India and Taiwan. It holds businesses in banking, technology and consumer sectors, including names like Taiwan Semiconductor, Tencent, Prosus NV and MercadoLibre.
With around £134 million under management and an ongoing charge of 0.60%, the fund offers a disciplined, research-led approach to accessing growth opportunities in global emerging markets.
7. Guinness Emerging Markets Equity Income Fund
This fund aims to deliver both income and long-term growth by investing in companies from emerging markets that pay regular dividends. These markets often grow faster than developed ones, supported by rising populations, expanding industries and increasing consumer spending.
The fund invests in a concentrated portfolio of 36 equally weighted companies that must earn at least 50% of their revenue from emerging markets. Each company is selected based on strong financial performance, good value, and the ability to grow dividend payments over time. All holdings must be valued at over $500 million.
Its performance has been strong in recent years. Over the past 12 months, the fund returned 11.01%, ranking 3rd out of 166 funds. Over 3 years, it returned 23.93%, well above the sector average of 13.01%. Its 5-year return of 51.40% also placed it firmly within the top quartile, ranking 21st out of 136 funds.
While it is one of the smaller funds in the sector, with £10.25 million in assets, it has built a track record for disciplined stock selection and consistent results. It may appeal to investors looking for income-generating companies in emerging markets, particularly those that are undervalued and well-positioned for long-term recovery.
8. abrdn Emerging Markets Income Equity Fund
The abrdn Emerging Markets Income Equity Fund focuses on generating income while aiming for capital growth over the long term. It invests at least 70% of its portfolio in companies that are either based in emerging markets or derive a significant portion of their revenue from them.
The fund applies a selective, research-led approach, with investment decisions grounded in detailed cash-flow analysis. Rather than chasing high-growth or speculative stocks, the managers prioritise companies with reliable earnings, good value, and a strong record of rewarding shareholders.
This strategy has delivered solid results. Over the past year, the fund returned 6.45%, outperforming the sector average of 3.68% and ranking 30th out of 166 funds. Its 3-year return of 23.20% placed it within the top quartile, and its 5-year return of 46.85% ranked 28th out of 136—clearly ahead of the sector average of 32.87%.
Performance has been supported by a well-diversified portfolio, with exposure to leading businesses across Asia’s technology, financial and communication sectors. The fund’s focus on resilient, cash-generative companies has helped it navigate periods of market volatility while maintaining a consistent income stream.
With more than £586 million in assets and backed by abrdn’s experienced emerging markets team, this fund offers a measured route into the sector for investors who value stability, income and disciplined stock selection.
9. Ninety One Emerging Markets Equity Fund
This fund invests in a wide range of companies across global emerging markets, aiming to deliver long-term capital growth through disciplined stock selection and detailed financial research. At least two-thirds of the fund is allocated to businesses that are either based in, listed in, or significantly exposed to emerging economies.
With approximately £19.86 million in assets under management, the fund has delivered standout performance. Over the past year, it returned 12.78%, ranking first in the sector. Its 3-year return of 18.43% was well ahead of the sector average of 13.01%. Over five years, it returned 42.53%, also outperforming the average of 32.87%.
The fund focuses on large, well-established companies with strong market positions and clear competitive strengths. Its holdings reflect long-term global trends such as increased digital adoption, growing urban populations, and rising consumer demand in developing countries. By investing across multiple regions, the fund aims to reduce volatility and capture opportunities from a broad mix of local markets.
These qualities have supported the fund’s consistent outperformance and helped establish it as a strong contender within the IA Global Emerging Markets sector.
10. JOHCM Global Emerging Markets Opportunities Fund
Launched on 30 June 2011, the JOHCM Global Emerging Markets Opportunities fund aims to deliver long-term growth by investing in shares of companies listed across global emerging markets. With £209.42 million in assets under management, it follows an active investment approach that combines a top-down view of market conditions with detailed analysis of individual companies.
The fund identifies regions with strong economic potential, then selects businesses that are financially sound and have clear growth prospects. The team uses both global macroeconomic trends and company-level research to uncover undervalued opportunities that may not be widely recognised by the broader market.
Its performance has been consistently strong. Over the past year, the fund returned 9.18%, ranking 9th out of 166 funds in the sector. Its 3-year return of 17.53% and 5-year return of 40.80% both exceeded the sector averages of 13.01% and 32.87%.
The fund invests across a wide range of sectors and countries to help manage risk and enhance long-term returns. It holds positions in some of the world’s most rapidly growing economies, including China, India, Brazil, Taiwan, the UAE and South Korea. Key investments such as TSMC, Meituan, Emaar Properties and Trip.com have contributed meaningfully to its success.
With its flexible, research-driven approach and focus on long-term value creation, the fund has established a strong track record within the global emerging markets sector.
Building Long-Term Success Through Strategic and Diversified Investing
Markets fluctuate, and so does performance across regions, sectors and asset classes. But investors who follow a clear, disciplined strategy and review their portfolios regularly are often better placed to meet their long-term financial goals.
Strong outcomes are rarely the result of short-term decisions. Instead, they come from avoiding common investment pitfalls, maintaining appropriate levels of risk, and ensuring portfolios remain well diversified. This is especially important in global emerging markets, where economic conditions can vary widely from one country to the next.
No single area of the market consistently leads. Diversifying across asset types and geographies can help smooth returns and manage volatility. Identifying high-quality, consistently performing funds within each area of the portfolio increases the likelihood of achieving more stable and competitive long-term growth.
Why Regular Portfolio Reviews Matter in Emerging Markets
Emerging markets offer investors access to fast-growing economies, but this sector also presents wide variations in fund performance. As this analysis shows, only a small number of funds have consistently delivered above-average results, while many have fallen short of their peers.
Selecting the right funds is an important first step, but long-term success depends on more than past performance. It is equally important to understand how each fund fits within the broader portfolio, whether the overall structure remains aligned to your objectives, and how well diversified your holdings are across regions, sectors and strategies.
Many investors continue to hold underperforming or unsuitable funds without realising the long-term impact this can have. Others may be exposed to portfolios that are poorly diversified, too concentrated in one area, or not responsive to changing market conditions.
Professional reviews can provide valuable clarity. Our partnership with MKC Wealth gives access to a team of experienced financial planners who can provide a personalised review of your investments. These reviews identify areas of strength, flag potential weaknesses and highlight how they fit within your overall financial planning goals..
If you would like a clear view of how your portfolio is performing, and whether more suitable options are available, you can request a free, no-obligation review with one of our advisers.
Taking a proactive approach to portfolio oversight can help ensure your investments remain suitable, well balanced and better positioned to capture opportunities in emerging markets over the long term.
