Nine EM funds to consider for 2016
By International Adviser, 11 Dec 15
Investors in emerging markets are taking a view that the gap in GDP per capita can be closed by above-average growth in these economies and, consequently their equities markets, argues Caspar Rock, CIO at Architas.
Funds to watch: AUM
Aberdeen Emerging Markets is a large-cap, bottom-up growth fund. Its size is something to bear in mind but the team, headed by Devan Kaloo (pictured), and resources behind this strategy are impressive and long-term performance is very good. Recently, they have been finding good opportunities in India and are consequently overweight versus the benchmark and have been avoiding China.
An excellent bottom-up, long-term, large-/mid-cap fund with a quality bias is Fidelity Emerging Markets. The fund is managed by the very experienced Nick Price, whose accounting background is used to great advantage. He is supported by a strong team and resources at Fidelity. The fund has a large allocation to consumer stocks, and the team sees a lot of opportunity in South Africa at the moment.
JP Morgan Emerging Markets is a good core, large-cap, quality growth fund backed by a strong team and the tried-and-tested JP Morgan process. They are currently playing the reform story in India, with an overweight in the region, while being underweight China. In terms of sectors, they have a strong preference for consumer stocks relative to the index.
Tags: Investment Strategy
