Aberdeen Latin America fund HL

dano1234

What do you think about this fund / potential for market growth over the next 5 years?

Would this be a good investment?

jamesd

Why do you think that this fund with no proven track record will do better than the other funds in that area that do have one that you can look at to see how well the mangers have done?

Latin America has good prospects long term in my opinion and I've done very, very well out of having a high weighting to that area during the recovery. I don't think it'll do as well during the coming part of the recovery but I still maintain a high weighting.

dano1234

Sorry, im new to investing.

I guess a fund with proven track record is a better investment. But getting into a new fund at a cheap unit price, could prove to be a very good investment?

otherwise i dont see the point in buying into a unproven fund, other than cheaper unit price to start with ? im not sure about it all though to be honest.

Is there any other funds in similar emerging markets etc, that you would reccommend as proven ?

thanks

Aegis

dano1234 wrote: »

Sorry, im new to investing.

I guess a fund with proven track record is a better investment. But getting into a new fund at a cheap unit price, could prove to be a very good investment?

otherwise i dont see the point in buying into a unproven fund, other than cheaper unit price to start with ? im not sure about it all though to be honest.

Is there any other funds in similar emerging markets etc, that you would reccommend as proven ?

thanks

You won't get a cheaper price by buying at launch. Unit trusts and OEICs always trade at the asset value of the underlying holdings. As such there will never be a discount or a premium like one that you might see for a share or an investment trust, so the entire performance will be based on what the fund buys into. Which will be, in general, the same sort of assets that an established Latin American fund is already holding.

cloud_dog

dano1234 wrote: »

But getting into a new fund at a cheap unit price, could prove to be a very good investment?

You've got to stop thinking like that.

You need to compare the percentage increases, i.e. fund A priced at 100p increases to 110p, and fund B priced at 200p increases to 220p; who's better off?

dano1234

Thanks for your replies,

I never really thought of it all like that

Would there be any advantage to buying into a new fund then? because if everyone looked at it like that, then how would a fund ever get a proven track record?

What i mean is, why would someone choose a new fund over a proven fund?

Mikeyorks

dano1234 wrote: »

Would there be any advantage to buying into a new fund then?

HL would persuade you so. I've just deleted their latest enticing Email earlier today.

I always prefer to see how they fare for a little while before I'm tempted to buy in. And I haven't been tempted thus far by any of the recent new funds.

There's plenty of Latin America funds around. I've had Scottish Widows very beneficially for the last 18 months (the funds that is!) and recently switched 50% of my holding into Invesco Perpetual LA Acc. Both have a good track record.

But Brazil is seriously dragging that sector down at the moment. The market there is 12% down over the last 3 months and (2.24% down tonight) showing little sign of slowing. It's dragging most Funds down almost commensurately. Apart from some concerns over inflation .... I'm not really certain why that is? Any offers

le_loup

H-L are almost certainly being paid by one means or another to pump this fund. They do it a lot and the funds are not always the best performers after launch.
Do your own research from lots of different sources and remember that a lot of new launches are jumping on a bandwagon of areas that have done well in recent past but may not persist.

Linton

dano1234 wrote: »

What do you think about this fund / potential for market growth over the next 5 years?

Would this be a good investment?

This is a niche high risk fund. If you already have a broadly based portfolio it could be a worthwhile addition. If you dont, than perhaps you should look elsewhere.

I would also share the caution about investing in new funds. There are other Latin American funds around, if that's what you want. For this one why not wait a year or so.

purch

Would there be any advantage to buying into a new fund then?

Yes, there often can be, and often it's the opposite.

HL are presumably offering this fund at a fixed offer price.

The NAV of the holdings could be higher than this price, and therefore you would benefit from taking up the offer. On the other hand they NAV could be lower at launch, which will mean you lose.

Unfortunately you won't know the case until later.

le_loup

Surely not. The NAV will be equal to the amount of cash put in ... or have I got the launch of new funds completely wrong. How can it have investments until money has been put in. You won't be buying an existing asset. Or do you? If so, how does it work?