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Aberdeen Emerging’s Asian exposure works in its favour

Aberdeen Emerging Markets Investment Company beat its benchmark over the six months ended 30 April 2016.  The company’s net asset value total return for the period was 6.1%, comparing favourably with a return of 5.6% from the benchmark index, the MSCI Emerging Markets Net Total Return Index (in sterling terms). The share price total return was 3.1%, reflecting a widening of the discount to the net asset value from 11.0% to 14.2% at the period end.

The manager says the primary source of NAV outperformance was fund selection, particularly within Asia, where core holdings, Fidelity China Special Situations and Ton Poh Fund performed admirably against their respective benchmarks. Asset allocation was a marginal negative with positive contributions from the underweight position in China and overweight allocations to Russia and Turkey slightly outweighed by the negative contribution from the underweight position in Brazil, where the market rallied sharply over the course of the half-year. Discount narrowing in underlying closed end fund investments was a small positive with the most notable contributions coming from JPMorgan Global Emerging Markets Income Trust and Weiss Korea Opportunity Fund, whose discounts narrowed by just over 3% during the period.

AEMC : Aberdeen Emerging’s Asian exposure works in its favour

 

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