Legal and general - Global emerging market index fund.

joshclem

Hi there.

I would like to invest my ISA allowed amount (£10,680) into legal and generals GLOBAL EMERGING MARKET INDEX FUND.

Does anyone think there are better companies to do this with?

Kind Regards

Josh

Linton

Suggest you look at the data on https://www.trustnet.com setting the sector to Global Emerging Markets.

The L&G fund has only been running about a year. So its long term performance relative to the managed funds cannot be assessed. The data for the past year puts it well into 3rd quartile.

I hold Aberdeen Emerging Markets and am very happy with what that has returned over the past few years.

One point though, I wouldnt put all my wealth into this one area - it is highly volatile. In the past year most EM funds have made a loss. If you have no other investments, perhaps up to 25% in emerging markets might be reasonable, and that would be assuming that you are investing for the long term, say 10 years.

Any

Hi guys,

Sorry for ressurecting old thread, but it is the same question...
I am also looking at the L&G global emerging market index and apart from the fact that it is currently loosing I cannot see where the Aberdeen is looking better?
Am I missing something?
Also the charges are much lower?

I am thinking this area is highly volatile and down at the moment, and that makes it a cheap buy with possible high growth.. It's a risk, obviously, but possible high return.

Your thoughts please?

dunstonh

Aberdeen emerging markets has been successful over the long term. It is one of those managed funds that can make paying extra for. Plus, in an area like emerging markets, local contacts can be very important and offer potential for enhanced returns that you not likely to see on western economy based sector funds.

I am thinking this area is highly volatile and down at the moment, and that makes it a cheap buy with possible high growth.. It's a risk, obviously, but possible high return.

In the UT/OEIC universe, the sector is pretty much near top of the risk scale.

Any

Hmm... It's difficult to compare it long term, because L&G fund isn't that old..
The manager of L&G fund has some years of experience in international markets..
Off to check the Aberdeen more thoroughly.

Jegersmart

Any wrote: »

Hmm... It's difficult to compare it long term, because L&G fund isn't that old..
The manager of L&G fund has some years of experience in international markets..
Off to check the Aberdeen more thoroughly.

what? The index fund aims to emulate an index so is not managed as such........

One point on "risk" - most people will just repeat what they hear with no real understanding of risk. someone has said that the OP should only put 25% in "emerging markets" because it is risky/volatile - but at the same time if you spread all your funds too thin it will be a bit like putting chips on most of the numbers on a routlette table - you are more likely to win *something*, but the potential return is likely to be lower. Personally I have most success when I invest with conviction after large corrections and in EM funds in general - those areas will still grow more than Europe will over the next decade imho. If you are investing over a large timescale I would go quite heavy on EM, but probably not an index fund - I would also go with Aberdeen EM or First State or Templeton Frontier or a mix.

Good luck!

J

StevieJ

I prefer First State, they always seem more careful with my cash

Jegersmart

StevieJ wrote: »

I prefer First State, they always seem more careful with my cash

Yes, I also hold FS

Any

Jegersmart wrote: »

what? The index fund aims to emulate an index so is not managed as such........

Still has a manager.. I thought it was weird, but it does.
I view tracker as a "safer" bet.. But this doesn't actualy seem like a 100% tracker...
Charges are low, but it still mentions manager?

And also Legal & General is supposed to have generaly good reputation on index trackers?

Jegersmart wrote: »

One point on "risk" - most people will just repeat what they hear with no real understanding of risk. someone has said that the OP should only put 25% in "emerging markets" because it is risky/volatile - but at the same time if you spread all your funds too thin it will be a bit like putting chips on most of the numbers on a routlette table - you are more likely to win *something*, but the potential return is likely to be lower. Personally I have most success when I invest with conviction after large corrections and in EM funds in general - those areas will still grow more than Europe will over the next decade imho. If you are investing over a large timescale I would go quite heavy on EM, but probably not an index fund - I would also go with Aberdeen EM or First State or Templeton Frontier or a mix.

Good luck!

J

I don't think 25% is spreading it "too thin" to be honest. Perhaps we have different view on balanced risk portfolio!
Also depends on risk attitude of the investor..

I have some even very low risk investments.. like fixed interest.

But I am only a beginner!

Thank you all for your help.

Lokolo

Any wrote: »

Still has a manager.. I thought it was weird, but it does.
I view tracker as a "safer" bet.. But this doesn't actualy seem like a 100% tracker...
Charges are low, but it still mentions manager?

Someone has to turn the computer on in the mornings....

Any

Lokolo wrote: »

Someone has to turn the computer on in the mornings....

I thought that was what IT managers are for?
Wouldn't it be cheaper just to leave it on over night?