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Aberdeen Emerging Markets fund saw £1 billion inflow in January
by Jonathan Miller on Feb 16, 2012 at 10:58
We have decided to remove the Aberdeen Emerging Markets fund from Citywire Selection after Aberdeen indicated that it was looking to limit flows into the strategy as current levels could impact manager Devan Kaloo's (below) investment approach.
Our analysis suggests that as the appetite for emerging markets has returned this year, the popular Aberdeen Emerging Markets fund saw over £1 billion of net inflows during January. This has come through the UK and Luxembourg-domiciled versions of the fund and assets are now above their July 2011 peak.
'If flows continue at their current levels we are likely to encounter liquidity issues in some of our holdings and we are not prepared to compromise the quality of our portfolios by investing in stocks of lesser quality' says Aberdeen.
We appreciate that this measure has been taken for the benefit of existing investors and even though this is one of our favourite emerging market funds, we have removed it from our list.
There is no impact on the fee structure and indeed regular savers can continue with their contributions without incurring any extra charges.
In a separate development for another Citywire Selection pick, GLG are looking to limit flows into the GLG Japan CoreAlpha fund. They believe liquidity issues might be faced in the Japanese market and are currently evaluating the potential impact. There will be an announcement by 1st March on measures that will be taken and we will keep readers informed as to whether it will remain on the Citywire Selection list.
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Aberdeen Live supplement: Fundamentals point to ongoing flows and solid returns from EMD
After a record year for inflows and market-leading performance in 2012, emerging market debt has taken a large step towards the mainstream. Our recent debate covers the outlook for the asset class this year and where opportunities can be found.