FTFM In theory, this is a great time to be a specialist emerging markets investment firm. Emerging market equities have doubled from their lows of November 2008 and fundamentals appear better than those of western economies. But many active fund managers are still finding emerging market funds a tough sell.
While some indices, such as Shanghai, are close to all-time highs, assets under management at emerging market specialists, such as Charlemagne Capital, are well below their peaks. Charlemagne managed $6.5bn (£3.9bn, €4.3bn) of assets in 2007, but this has fallen to $2.6bn today. Although investment performance is the main reason for the decline, outflows have made a significant contribution – the company suffered net redemptions of 7.8 per cent in 2008.
