Aberdeen Emerging Markets Equity Fund is managed by a team with a buy-and-hold investment approach, so the positioning of the portfolio has changed little over the past year.
We recently caught up with Devan Kaloo, Aberdeen's Head of Global Emerging Markets, who provided us with a brief update.
- The decline in the oil price held back the performance of emerging markets towards the end of 2014. Yet this should ultimately prove a positive for the emerging world as a net importer of oil. Some governments are removing costly fuel subsidies and these cost savings can be passed onto other areas of their economies, such as infrastructure.
- The fund has held a considerable weighting in India for several years, though profits were taken from Indian holdings last year following a period of strong growth. A position in GlaxoSmithKline’s Indian subsidiary has been sold.
- New positions include Jerónimo Martins, a Portuguese retailer purchased at an attractive valuation, which the team believes to be well-run with an established franchise in Poland. South African-based telecoms business, MTN Group, has also been added.
Performance
The past couple of years presented a challenging environment for emerging markets investors which is a higher-risk region. This fund has underperformed the wider market over the past two years. Over the longer term, the team’s long-standing investment approach has seen the fund in good stead. Over ten years, it has returned 314.8%* against 166.8% for the average fund in the sector. Please remember past performance is not a guide to future returns.
| Annual percentage growth | |||||
|---|---|---|---|---|---|
| Apr 10 -
Apr 11 |
Apr 11 -
Apr 12 |
Apr 12 -
Apr 13 |
Apr 13 -
Apr 14 |
Apr 14 -
Apr 15 | |
| Aberdeen Emerging Markets Equity Fund | 14.4% | 1.5% | 15.4% | -13.8% | 12.8% |
| IA Global Emerging Markets | 9.9% | -8.4% | 7.6% | -10.2% | 11.4% |
Past performance is not a guide to future returns. Source: Lipper IM* to 01/04/2015
Our view on this fund
To keep the fund a manageable size and protect underlying investors, Aberdeen has sought to restrict inflows into the fund. The fund therefore does not feature on the Wealth 150, our favourite funds across the major sectors. However, we continue to hold the team in high regard and we favour their approach of seeking high-quality businesses at reasonable valuations.
Find out more about this fund including how to invest
Please read the key features/key investor information document in addition to the information above.
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