Aberdeen launches new emerging markets fund
Aberdeen Asset Managers will add to its emerging markets menu with the launch of a new Global Emerging Markets Smaller Companies Fund.
The new fund comes in response to rising interest in the asset class. It will be a sub-fund of Aberdeen Global, the Company’s Luxembourg-domiciled SICAV, and is slanted for launch in March, subject to regulatory approval.
Aberdeen’s Global Emerging Markets Team, headed by Devan Kaloo, will manage the fund. It will aim to provide long-term capital growth through investment in a portfolio of smaller company equities listed on emerging stock markets around the world (defined as companies with market caps below $2.5 billion), or smaller companies with significant activities in emerging markets.
“By capitalising on the poor level of research on emerging market smaller companies, Aberdeen aims to create considerable long-term value for its clients through the new Aberdeen Global Emerging Markets Smaller Companies Fund,” Kaloo said.
“For this year, we expect markets to rise again, but not as strongly as they did in 2006, because economic growth and corporate profit growth are likely to be somewhat slower. Meanwhile, the long-term story in emerging markets is rising domestic consumption, given these economies’ growing, youthful populations. The new Aberdeen Global Emerging Markets Smaller Companies Fund will offer clients extensive exposure to this via domestic-orientated companies,” he said.
The launch of the fund, scheduled for March 2007, comes amid growing demand from Aberdeen’s institutional clients for exposure to emerging market smaller companies.
Recommended for you
Global asset manager BlackRock has identified bringing private markets to the wealth channel as a key business area for the firm that could generate US$500 million in revenue in the future.
Flows into cash and fixed income ETFs soared in May, rising from $366 million in April to more than $1.3 billion, data from Betashares shows.
Quinbrook Infrastructure Partners has promoted its Australian head to the role of chief executive of the global investment manager.
UK-based fund manager Royal London Asset Management has appointed a Sydney-based head of regional sales as it embarks on a multiyear plan to expand its presence internationally.
