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Who are the new kids on the emerging market block?
by James Phillipps on Dec 28, 2012 at 07:00
Investors looking to buy into emerging markets have increasingly seen their options limited when it comes to fund selection, with a number of the best known managers shutting their doors to new money over capacity fears.
This year has seen the two big guns in the sector, Aberdeen and First State, soft-close nine specialist emerging market mandates between them.
Aberdeen restricted inflows into its £8.5 billion Global Emerging Markets Equity and £3.4 billion Emerging Markets funds at the end of February.
This followed a similar move by First State in January to soft-close five funds, including its Greater China Growth and Latin America mandates and then in August, the group added its £6.4 billion Asia Pacific Leaders and £3 billion Global Emerging Market Leaders funds to the list.
Lazard and Baillie Gifford have also soft-closed their main emerging market funds, meaning investors have to look beyond the traditional names to gain exposure to the asset class.
But with more than 70 funds in the global emerging markets sector, which names are wealth managers backing to fill the void for new clients that cannot access the vehicles many existing clients already hold?
Here we outline the likely contenders:
James Calder, research director, City Asset Management on Charlemagne Magna Emerging Markets Dividend
One-year total return to end October: 13.2%
One-year sector average: 4.4%
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