Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

Aberdeen Emerging Markets fund saw £1 billion inflow in January

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.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Investment Pulse: the highs and lows of 2014

Investment Pulse: the highs and lows of 2014

This week's Investment Pulse looks back at some of the biggest stories of the year as well as looking forward to 2015.

Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter