The Aberdeen Global Emerging Markets Smaller Companies 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.
- New positions include Egypt-based Juhayna Food Industries, which has a good market position, robust distribution network and leading brands, according to the team.
The past couple of years presented a challenging environment for emerging markets investors. This fund has underperformed the wider market over the past two years; however, over the longer term, the team's long-standing investment approach has seen the fund in good stead. Since launch in March 2007, it has returned 134.3%* against 94.9% for the MSCI Emerging Markets Small Cap Index. Please remember past performance is not a guide to future returns.
|Annual percentage growth|
| Apr 10 -
| Apr 11 -
| Apr 12 -
| Apr 13 -
| Apr 14 -
|Aberdeen Global Emerging Markets Smaller Companies Fund||20.7%||4.7%||24.9%||-16.1%||7.5%|
|MSCI Emerging Markets Small Cap||12.7%||-13.1%||15.1%||-7.3%||13.9%|
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. The fund's allocation to higher-risk smaller companies and exposure to emerging markets adds risk, so it should be held with a long-term view.
Please note as an offshore fund investors are not normally entitled to compensation through the UK Financial Services Compensation Scheme.
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