Foresight Landscape Report – Emerging Market Funds in Australia – 31.03.2017

In the latest Foresight landscape report on global emerging markets, we showcase the success of active managers, market share of key players, ranking of funds by flows, advanced performance statistics and distribution of fees charged. Our analyses show alpha generation across open-ended funds (over last 5 and 10-year periods) continues to be very weak, however separate accounts have fared a lot better with observed outperformance of more than 50 percent of the participants over the same periods. The market share of managers in this asset class continues to be dominated by separate accounts and open-ended funds. In addition, Commonwealth Bank/Colonial Group, Aberdeen AM and Vanguard continue to dominate the asset flow stakes. Elsewhere, the rolling 12-month returns for this category has improved quite substantially from March 2016 lows and is currently in double digits. Our report shows the median fees for separate accounts is close to 1 percent, open-ended funds 1.3 percent and ETFs around 0.6 percent.