Effective date: 31/08/2026Performance
In August 2026, the MSCI Emerging Markets Index delivered a performance of +2.38%, outperforming the MSCI World Index, which rose by +1.60%. The indices of the main emerging countries showed contrasting trends, with several markets posting notable gains. Among them, South Africa recorded the best performance at +10.32%, followed by Turkey at +7.01%, Taiwan at +5.40%, Korea at +4.88%, and Poland at +4.04%. The Czech Republic rose by +1.93%, Chile by +1.54%, while Hungary remained stable. Conversely, several countries saw declines, notably the Philippines at -8.24%, Thailand at -2.91%, Brazil at -2.36%, China and India at -1.29%, Mexico at -1.03%, and Indonesia at -0.91%. Performances are expressed in euros.
Key highlights of the month
The monthly performance of emerging markets turned positive again in August, after two consecutive months of decline. Emerging markets outperformed the S&P 500 Index as well as developed markets. This recovery was largely driven by a rebound in Korea and Taiwan. In Korea in particular, the massive unwinding of positions mainly held by hedge funds and leveraged ETFs appears to have ended. Markets regained confidence in the development of artificial intelligence, supported by continued capital expenditures, solid revenue forecasts during the second quarter earnings season, and shareholder return plans from major Korean memory players. In particular, the announcement of a record increase in Nvidia’s annual revenue strengthened the long-term outlook for AI-related infrastructure in North Asia, signaling sustained spending by hyperscalers.
Review of main positions for the month
In August 2026, the fund’s performance was +3.81%, while the benchmark index was at +2.38%. Analysis of sources of relative performance reveals a neutral sector effect, with favorable selection in technology and healthcare sectors, but unfavorable in materials and energy. The country effect is positive thanks to a good contribution from Canada and Brazil, but negative for Saudi Arabia and South Africa. The Alpha Blend factor contributed positively with +0.93%, while the Defensive Alpha factor was neutral. The capitalization size effect remains negligible.
Among the stocks, we note positive contributions from King Slide Works (overweighted +82.9%), Aura Minerals (overweighted +53.1%), Gold Circuit Electronics (overweighted +48.3%), and Aspeed Technology (overweighted +11.6%). Conversely, Anglogold Ashanti (underweighted -47.2%), Hengan International Group (overweighted -11.6%), and Gold Fields (underweighted -39.9%) penalized performance.
Outlook for the following month
The current market context is marked by multiple structural disruptions, going beyond the traditional end of cycle. Geopolitical tensions, energy disruptions, and technological acceleration are maintaining persistent inflation, high budget deficits, and lasting macroeconomic uncertainty. Markets are unlikely to quickly regain pre-2026 stability. Pricing, balance sheet strength, and resilience to high discount rates remain key to differentiating assets and sectors. The equity environment remains favorable but highly selective. Artificial intelligence remains the main driver, expanding its benefits to an ecosystem including infrastructure, software, and industrial suppliers, reinforcing the sustainability of the theme. Regionally, the United States maintains solid fundamentals despite high valuations, while Europe is becoming more attractive, notably due to its ability to absorb energy costs. Emerging markets require rigorous selection; China demands a targeted approach, India retains interesting potential, and Japan relies on stable fundamentals. The strategy favors a moderately pro-risk positioning, focused on diversification and quality, targeting companies with robust cash flows and well positioned for long-term investment trends. The best opportunities are obtained through asset dispersion rather than a single dominant market direction.