Are UK fund buyers returning to emerging markets? EM funds buck September's equity outflows as Omnis, Rowan Dartington and Saltus add

Emerging market equity funds were one of the few areas UK investors bought in September. "Global and emerging-market funds bucked the trend, attracting £410m and £133m respectively," while equity funds overall lost £858m (Calastone, 7 October). In August, the Investment Association's Global Emerging Markets sector took £253m of net retail inflows, while Asia Pacific ex Japan (−£36m), China/Greater China (−£15m) and India (−£58m) saw outflows.

Several UK multi-asset fund buyers have been adding EM funds:

• Omnis Investments increased the Omnis Emerging Market Leaders Fund in its OMPS model portfolios, funded by reducing the Omnis Asia Pacific ex Japan Fund "after strong performance" and the Omnis UK Gilt Fund, "increasing exposure to India and China, where valuations and the long-term outlook are more attractive" (6 October). In its Agility Tactical Trade portfolios it increased Indian and Chinese equities, also funded from the Asia Pacific ex Japan fund: "Chinese equities remain deeply undervalued, with policy stimulus building" (10 September).
• Rowan Dartington "introduced two new emerging market funds to the responsible investment models": the Goldman Sachs Alpha Enhanced Emerging Markets Equity Active ETF and Robeco Sustainable Emerging Stars Equity (factsheet as at 31 August).
• Quilter's Cirilium portfolios added a new position in Ashmore Emerging Market Equity ESG, "funded from index exposures" (August commentary, 17 September).
• Saltus's asset allocation committee rates emerging market equities and emerging market debt "++", its most positive rating (1 October). Its Managed Plus Balanced portfolio held 9.1% in emerging market equity at 30 September, including Artemis SmartGARP Global Emerging Markets Equity (3.5%). Allo's tracker of Saltus's monthly factsheets shows that weight up from 5.7% the previous month.

Not every buyer is adding. St. James's Place cut around £70m of index-oriented EM exposure in Polaris Multi-Index and moved it into small caps, though "emerging market positions remain overweight across all ranges" (5 October). Among house views, Pictet Asset Management sees "strong grounds for maintaining an overweight in emerging market equities outside China" (October Barometer). Quintet continues to favour "emerging market equities, where growth prospects remain relatively attractive" (28 September).