Emerging markets have outperformed developed markets in 2025, with the Morningstar Emerging Markets TME Index returning 9.3% in GBP terms. Markets rebounded following US tariff announcements, with a tariff framework agreement between the US and China boosting investor confidence in China and emerging markets. Investors are reallocating capital to other regions.

Silver-rated JPM Emerging Markets Income offers a quality-income option in emerging markets, targeting a dividend yield of approximately 130% of the MSCI Emerging Markets Index’s yield. JOHCM Global Emerging Markets Opportunities employs a top-down approach, focusing on growth-at-a-reasonable-price stocks. GQG Partners Emerging Markets Equity stands out with a flexible, style-agnostic approach.

Gold-rated GQG Partners Emerging Markets Equity takes a flexible, conviction-driven approach, including select US-domiciled companies with exposure to emerging markets. Bronze-rated Lazard Emerging Markets benefits from a bold yet patient relative value process, focusing on companies with above-average returns on equity trading at below-average valuations. The strategy boasts a strong long-term track record.

Read more at Morningstar: Our Top Fund Picks in Emerging Markets Equity