Emerging Markets Equity Fund Shows Robust Growth in Q3 2025
Unlocking Global Potential: Navigating Emerging Markets for Superior Returns
Q3 2025 Performance Overview: A Period of Significant Gains
Emerging markets experienced a period of robust expansion during the third quarter of 2025, with the MSCI Emerging Markets Index recording an impressive increase of 10.64%. This substantial uplift underscores a positive shift in investor sentiment and a strong underlying economic momentum across various developing economies.
AI Enthusiasm Drives Key Sector Growth
The burgeoning excitement surrounding artificial intelligence (AI) played a pivotal role in propelling certain sectors within emerging markets. Specifically, internet-related companies in China and semiconductor manufacturers located in South Korea and Taiwan observed considerable benefits, reflecting the global focus on technological advancements and their potential impact.
Fund Outperformance: Exceeding Benchmark Expectations
The Active M Emerging Markets Equity Fund demonstrated exceptional performance, surpassing its benchmark with a gain of 11.20% against the index's 10.64%. This notable outperformance indicates effective management and strategic investment choices that capitalized on market opportunities.
Strategic Allocation: Underweighting and Overweighting for Added Value
A key factor contributing to the fund's success was its astute geographical allocation. An intentional reduction in exposure to Indian markets (underweight) coupled with increased investments in South Africa and Peru (overweight) proved to be a valuable strategy, generating additional returns and showcasing the benefits of active portfolio management in navigating diverse market landscapes.