M&G Global Emerging Markets Fund delivers top decile performance

The M&G Global Emerging Markets Fund celebrates its first year with top decile performance, thanks to the stock selection of its co-managers Michael Godfrey and Matthew Vaight.

Since its launch on 5 February 2009, the equity fund has returned 73%, outperforming the 55% return from the benchmark MSCI Emerging Markets Index and the 56% average return in the IMA Global Emerging Markets sector. The fund ranks top decile in its peer group.

Godfrey and Vaight took advantage of some of the worst conditions in markets since the Great Depression of the 1930s to buy stocks whose prices failed to reflect the long-term value of the issuing companies because of poor investor sentiment.

Among their stock picks at the time were Noble Group, the Hong Kong-based commodities distributor, and Consorcio ARA, Mexico's leading housebuilder. The value of both stocks has doubled in local currency terms since the fund's launch.

Michael Godfrey, co-fund manager of the M&G Global Emerging Markets fund comments: "The challenge for us as stockpickers is to identify companies that can create value for shareholders, where the potential for value creation is not fully appreciated by the market. It is also pleasing that despite the inherent volatility in emerging markets the fund has delivered consistent out-performance across different market conditions."