Despite the falls seen across emerging markets in September, Jonathan Asante, manager of the First State Global Emerging Markets Leaders fund, has remained confident. "The fund is defensively positioned, invested in businesses with quality franchises and managements with strong track records."
The fund's cumulative performance of 67% over three years is a boon for Asante, who took over as the fund's lead manager two years ago. That job was previously held by star manager Angus Tulloch. The fund has returned nearly double that of its emerging markets benchmark, which posted a 36% gain over the same period.
Long-term capital growth is the key goal for the fund, which invests in large or mid-cap companies across emerging economies. Over half of the fund is invested in emerging Asian countries, followed by 25% in Europe, the Middle East and Africa. Consumer staples is the prominent industrial category, followed by telecom services, IT and financials. In September, Asante bought shares in Anglo American close to its book value, and in China Merchants Holdings, "possibly the best state-owned company in China with attractive port assets".
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
"The events in the Middle East and North Africa are a reminder that emerging markets can be volatile, but longer-term prospects remain encouraging," Mark Dampier, head of research at Hargreaves Lansdown, commented earlier this year. Dampier likes companies with strong balance sheets and the ability to pass on rising costs. "In this environment, we think [the managers'] cautious approach should prove rewarding."
Contact: 020-7332 6500.
Emerging Markets LeadersFund top ten holdings
| Taiwan Semiconductor | 5.1% |
| Hong Kong & China Gas | 4.7% |
| AngloGold Ashanti | 3.6% |
| Anheuser-Busch | 3.6% |
| Samsung Fire & Marine | 3.6% |
| Hindustan Unilever | 3.4% |
| SABMiller | 3.1% |
| Uni-President Enterprises | 3% |
| E-Mart | 3% |
| Tiger Brands | 2.8% |
-
Side hustle tax changes: HMRC reforms could save thousands from filing self-assessment tax returnsThe government plans to raise the tax-free threshold for trading income – here is how it could help your side hustle
-
Return to the office: is working from home coming to an end?More and more employers want their staff to return to the office. Is it a good idea?
