31/03/2010 Author: Zaki Abushal

Eastern Europe leads March's emerging markets surge

After enduring a disappointing February, with many funds struggling to rebound from equity market lows at the beginning of the month, emerging markets funds surged ahead in the early part of March.

Funds with a keen interest in Eastern Europe provided a high percentage of the winners. PF Lux-Eastern Europe P Cap was up 11.55% through to 17 March, leaving it up a little more than 14% YTD. PF Lux was the strongest showing but others weren’t all that far behind. The Vontobel Eastern European Fund returned 8.35% to 16 March, up 12.2% YTD; and the Kaltchuga Fund – Russia Equity returned 7.57% through to the 12 March.

Thanks to the uncontrollable flight from emerging markets funds in 2008, none of the funds have amassed a vast sum; in fact, most will be happy to still be around, considering the size of their drawdowns – Kaltchuga suffered close to 82% drawdown from the end of 2007 to the beginning of 2009.

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