Fund of the week: best bets in emerging markets
Aberdeen's Emerging Markets Fund boasts offices around the world. That, it claims, should give it insight into what's happening in any given market. And sure enough, it has returned 104.4% over the past five years against 68.7% for the sector.
It's tough picking stocks in Sao Paulo or Mumbai particularly if you spend all your time in a London office. This is what sets the Aberdeen Emerging Markets Fund apart. It boasts a network of offices around the world, overseen by its head of equities Hugh Young in Singapore. That, says its marketing literature at least, should give Aberdeen a unique insight into what's happening in any given market. And sure enough it has returned 104.4% over the past five years against 68.7% for the sector.
This year, in common with all emerging markets, its performance has lagged down 28.9%. That may sound abysmal. But emerging markets now trade on a very low forward p/e of 3.6, making this ideal hunting ground for Young. As a 'special-situations' manager, he looks for companies with bombed-out valuations and "little or no debt that could be held in the portfolio for the long term", says Mark Dampier of Hargreaves Lansdown in Money Marketing. So for those keen to get into emerging markets, this may not be a bad time to start drip-feeding money into the fund, which holds Femsa, Latin America's largest beverage group, and South African wholesaler Massmart among its top holdings.
Tel: 020-7463 6000
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
Aberdeen Emerging Markets Fund top holdings
Name of holding | % of assets |
Aberdeen Global India Opportunities | 4.30 |
Samsung Electronics (Pref) | 4.10 |
China Mobile | 8.10 |
Taiwan Semiconductor Manufacturing | 3.10 |
Petroleo Brasileiro (Pref) ADR | 3.00 |
Massmart | 3.00 |
Richter Gedeon | 2.90 |
Vale | 2.80 |
Femsa | 2.60 |
PetroChina Co | 2.50 |
Get the latest financial news, insights and expert analysis from our award-winning MoneyWeek team, to help you understand what really matters when it comes to your finances.
MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.
-
Review: Eden Roc Cap Cana – fun, sun and golf in the Caribbean
Travel Eden Roc Cap Cana in the Dominican Republic offers everything from relaxing by the pool to a world-class golf course
-
Reeves delays cash ISA reform, but savers are not out of the woods yet
The chancellor has reportedly delayed plans to cut the cash ISA limit, which were set to be announced at Mansion House on 15 July, and will take more time to consult with the industry