Buyers tip giant EM funds to reopen as market falls drive down AUM

clock • 2 min read

Fund buyers have flagged the possibility of the country's largest emerging market equity funds reopening after outflows and market falls prompted a sharp drop in assets.

Aberdeen's Emerging Markets equity franchise and First State Global Emerging Markets Leaders both effectively soft-closed to new investment last year when the two asset managers introduced initial charges of 2% and 4% respectively. Since then, however, the emerging market sell-off which first began last summer has accelerated, most notably at the start of 2014. Assets in the offshore Aberdeen Global Emerging Markets Equity fund, for example, peaked at $16.7bn (£10.1bn) when it soft-closed in February last year, according to FE data. Its asset base had subsequently fallen to $10.5bn...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Emerging Markets

Partner Insight: Vanguard's perspective on China's economic challenges

Partner Insight: Vanguard's perspective on China's economic challenges

Vanguard’s chief economist in Asia-Pacific, Qian Wang, and senior investment strategist, Grant Feng, explore the outlook for China’s economy and what it might mean for global investors.

Qian Wang, Chief Economist in Asia-Pacific, Vanguard and Grant Feng, Senior Investment Strategist, Vanguard
clock 25 September 2023 • 8 min read
Partner insight: China could see amazing improvements in productivity

Partner insight: China could see amazing improvements in productivity

Factory and agricultural automation will be needed to counteract China’s falling birth rate, says Capital Group’s Martyn Hole

Capital Group
clock 15 February 2022 • 1 min read
Industry Voice: Emerging markets' overlooked resilience

Industry Voice: Emerging markets' overlooked resilience

Horizon by Embark and Columbia Threadneedle
clock 17 November 2021 • 5 min read