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Emerging markets continued last year’s trend in Q1 2024. And that is not good news for emerging market investors, as it meant another significant underperformance versus developed countries. Although the return of the MSCI EM index was 4.71 per cent in euros, making it positive in absolute terms, it is a considerably worse result than the 11.37 per cent achieved by the MSCI World index.

We embark on the second quarter with the launch of a revised feature: the Morningstar Fund Radar. In this weekly column, succeeding the previous Top 5 analysis, Morningstar’s fund analysts examine the state of affairs within a particular asset class, then delve into one or several mutual funds, with the primary selection criterion being the Morningstar Medalist Rating. As customary, we commence the new quarter with an overview of global equity funds.

DWS, one of Europe’s biggest asset management firms, has announced the launch of a new series of Xtrackers Exchange Traded Funds (ETFs), offering investors a novel way to invest in euro-denominated corporate bonds. This innovative range is designed to provide both regular quarterly distributions and a payout of remaining fund assets upon maturity.

Ciaran Fitzpatrick of State Street Institutional Services paints a vibrant picture of the evolving landscape for Exchange-Traded Funds (ETFs). Across the investment world, the move from active to passive is not just a trend but a shift that is being felt across retail and institutional investments, largely due to persistent pressure on costs. Ireland and Luxembourg present different appeals to new issuers.

Through various legislative acts over the past 10-15 years, the EU’s push to democratise private markets has transformed how private equity does business, with a heavy helping of technology and fund management tools allowing for what could be a massive influx of smaller-denominated investors. Market participants are feeling their way forward into the new paradigm, some being quite certain that change has now come in the impending form of the new European Long-term Investment Fund.

A stellar performance of a small number of listed tech companies is largely responsible for the recent recovery in public stock markets. For Ben Prade, partner at international tech investor GP Bullhound, it remains to be seen whether this can serve as a full market revival. Nevertheless, he is upbeat about the prospects for private tech investments, saying 2023 can become “one of those really great vintages”.

In an age where financial success often overshadows our responsibility towards the environment and society, there is a growing need for investment strategies that align with our values and contribute to a sustainable future. Enter the terrAssisi Equity Fund, a unique investment initiative that draws inspiration from the timeless values of Saint Francis of Assisi, blending financial acumen with ethical considerations.

Franklin Templeton on Monday said that all 21 Ucits ETFs from its Icav range have become available to Luxembourg investors in response to growing client demand for ETF solutions.

Claus Vorm, senior portfolio manager and deputy head of multi assets at Nordea Asset Management, underlines the importance of choosing companies with predictable and stable prospects over time, which deliver superior and less volatile performance. Without investing in energy, his 100 per cent equity fund managed to achieve a near break-even result in 2022. 

As inflation has started to normalise, many market observers have started to find bond markets attractive again. Yields have risen to their highest levels in over a decade. Corporate debt has recovered, making bond investors comfortable after years of bad returns.