The last twelve months have seen mixed fortunes for Asian and emerging markets investors. Some markets were among the year’s best-performing - India proved to be the most prolific following a resounding victory for pro-business leader Narendra Modi in the election - while at the other end of the spectrum Russia fell heavily leaving investors nursing significant losses.
The disparity between nations in these regions is clear - in stock market performance, as well as in the pace of each country’s economic development. Emerging economies continue to undergo rapid growth through industrialisation and urbanisation. Yet investors often forget these parts of the world are also home to economies already well-established, with good levels of corporate governance. Hong Kong and Singapore, for instance, have already successfully developed into financial hubs with global reach.
The sheer scale and variety of opportunities on offer can therefore be difficult to navigate. Different regions and types of company will perform well at different times and fund managers will not invest in all countries at the same time. Furthermore, they will adopt different approaches and have areas of expertise, and will not necessarily outperform at the same time. Choosing only one fund for exposure to this higher-risk area may not provide sufficient diversification.
Our new HL Multi-Manager Asia & Emerging Markets Fund could be the answer to diversification. We will blend together what we believe to be the very best funds, aiming to deliver outperformance irrespective of which area or country is currently in favour.
We are proud of our record of identifying some of the best managers in these sectors. Below we show how our Asia and emerging market selections have performed in our HL Multi-Manager Special Situations Trust. We believe this experience will prove invaluable when selecting the underlying portfolio for this new fund. The portfolio will be constantly monitored and we are free to invest across the full range of Asian and emerging markets in search of the best returns. There are however no guarantees, and like all funds its value will fall as well as rise, so investors could make a loss.
Asian and emerging economies have arrived as powerful contributors to global economic growth. Rather than focusing on one sector, the HL Multi-Manager Asia & Emerging Markets Fund provides diversified exposure to both and leaves the day-to-day decision-making to our professional fund managers.
Please note the deadline to invest in this fund at launch is 5pm on 28 March.
Please note this fund is managed by our sister company Hargreaves Lansdown Fund Managers.
The HL Multi-Manager funds are managed by our sister company Hargreaves Lansdown Fund Managers.
Our record of picking Asia and emerging markets funds
Please note past performance is not a guide to the future. Source: HL internal to 28 February 2015.
Our HL Multi-Manager Special Situations Trust launched in 2001, and invests globally with a selection our favourite managers. Our new HL Multi-Manager Asia & Emerging Markets Fund will use the same process to choose funds. Above we show how our Asia and Emerging Market selections within the HL Multi-Manager Special Situations Trust have performed to date. They have comfortably outperformed both the Asia Pacific and Emerging Market sector averages, although please remember past performance is not a guide to future returns. We hope to repeat our success, the new fund has a different focus and naturally there are no guarantees.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.