Year to date, Aberdeen Emerging Markets (AEMC) has been performing well, outstripping both its benchmark and the average of its peer group by some margin (see page 8). The members of the investment management team, who predicted a resurgence in AEMC’s performance in 2019, believe there is more to come over the remainder of the year. They highlight that, globally, investors are still underweight emerging markets. In addition, the recent rate cut in the US could signal a halt to US dollar strength, to the benefit of emerging market currencies and stock markets.
That said, as the US/China trade war rumbles on and accusations of currency manipulation are bandied about, Chinese growth is slowing. The best-performing markets of recent times have been in South America and EMEA (Europe, Middle East and Africa). Now is when a manager of a global emerging markets fund that can add value through its asset allocation decisions earns its keep.
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.