Headline returns: Active GEM funds returned an average of 14.7% in H1 2025, slightly behind the 15.6% return from the iShares MSCI EM ETF. 42.3% of active funds outperformed the benchmark.

Value led the way: 84.9% of Value funds beat the benchmark with an average return of 16.27%, outpacing Aggressive Growth funds by 6.27%.

Stock-level attribution: Overweights in MercadoLibre, SK Hynix, and SK Square generated outperformance, while positioning in Globant and Xiaomi, alongside elevated cash positions, detracted.

China positioning hurt: Underweights in China & HK, combined with stock selection in the region, were the largest contributors to active underperformance versus the benchmark.