The managers of Aberdeen Emerging Markets (AEMC) are optimistic about the prospects for the company. Strong performance last year has not yet translated into a reduction in the discount that the share price trades at relative to the asset value, but if outperformance can be maintained, this should follow in time. Investors might also be comforted by AEMC’s much lower volatility of returns compared to its peers and its benchmark.
The managers feel that AEMC offers investors a ‘one-stop shop’ for those looking for emerging markets exposure. AEMC’s portfolio would be hard for most investors to replicate without considerable effort. It also benefits from an experienced and well-resourced team, backed by the resources of Aberdeen Standard Investments.
Before the emergence of COVID-19 (the coronavirus), the managers felt that 2020 could be the year in which emerging market earnings turned a corner. Investors’ expectations and valuations are more realistic now and recent market falls could be a buying opportunity.
AEMC invests in a carefully-selected portfolio of both closed- and open-ended funds, providing a diversified exposure to emerging economies. It aims to achieve consistent returns for its shareholders in excess of the MSCI Emerging Markets Net Total Return Index in sterling terms.