Aberdeen Emerging Markets

Andy Parsons, Advice team manager at The Share Centre, explains how investors looking for long-term capital growth from direct or indirect investment in emerging markets, could benefit from the Aberdeen Emerging Markets fund.

"Emerging markets have become increasingly popular with investors over recent years, given their strong fundamentals, positive reform, advantageous demographics, wealth in resources and sound banking systems.

"For many, investing in emerging markets will mean exposure to the BRIC (Brazil, Russia, India and China) economies. However, the emerging market story is far more widespread, as investors could also benefit from exposure to countries such as South Korea, South Africa, Taiwan and Turkey to name but a few.

"The Aberdeen Emerging Markets fund is ideal for more adventurous investors who want broad emerging market exposure, with access to more than just the BRIC economies, in a well diversified portfolio.

"Unlike the vast majority of funds, this fund has no single manager at the helm. Instead it is managed on a ‘team' basis by Aberdeen's emerging market specialists, with its managers and analysts being involved with the participants of these markets on a daily basis.

"The fund invests in approximately 50-to-60 stocks, favouring a blend of large and mid cap companies, with the emphasis on investments being held for the longer term rather than being traded. The team applies a bottom up approach with an emphasis on absolute returns rather than the benchmark.

"In terms of performance the fund has a strong track record, having returned 71.41% over a 3 year cumulative period to 9 April 2010, and 209.16% over a 5 year cumulative period. Year-to-date the fund has returned 14%, ranking it not only 1st quartile in all three of these periods, but either number one or two in the sector.

The Aberdeen Emerging Markets fund has an annual charge of 1.75% and an initial charge of 4.25%. The minimum initial investment is £500 and the minimum additional investment is £100.

As the fund features in The Share Centre's Platinum 120 range, customers of the retail stockbroker wishing to invest in the Aberdeen Emerging Markets fund will not have to pay the initial charge or purchase dealing commission. Customers can also invest in the fund from as little as £10.