Aberdeen EM

TCA

Linton wrote: »

The Small Companies fund is a different one to the EM fund imposing the 2% charge, the latter being mainly large companies.

http://www.aberdeen-asset.com/doc.nsf/Lit/LetterGlobalAGShareholderletter-EN

ColdIron

I think it does affect TCA's fund, the list of funds affected is:

Aberdeen Emerging Markets (15 April)
Aberdeen Global Emerging Markets Equity (11 March)
Aberdeen Global Emerging Markets Smaller Companies (11 March)

Not to be confused with:
Aberdeen Global Asia Pacific Equity
Aberdeen Global Asian Smaller Companies

JohnRo

Indeed, here's a Q&A release from Aberdeen.

http://www.aberdeen-asset.com/doc.nsf/Lit/ArticleGroupGEMQandA

justme111

Could not open the link. Is it a charge for new money or new customers ?

ColdIron

New money
Interesting to see they are top of HL's January sales, I wonder how long this will last after April

Top Isa fund sales in January

1. Aberdeen Emerging Markets
2. Artemis Income
3. Cazenove UK Smaller Companies
4. First State Asia Pacific Leaders
5. First State Global Emerging Mkt Leaders
6. INVESCO PERPETUAL High Income
7. JO Hambro UK Equity Income
8. Marlborough Multi Cap Income
9. Newton Asian Income
10. Newton Emerging Income

TCA

Can't make up my mind as to whether to stick a load into my Aberdeen Global Emerging Markets Smaller Companies Fund before this 2% initial fee kicks in, or just stick to my monthly plan and either bite the bullet or find a new fund.

Re the last option, has anyone got any other Global Emerging Markets Smaller Companies funds they like?

I found Templeton Emerging Markets Smaller Companies Fund Class W GBP (Acc) run by Mark Mobius. It's a new fund (doing well) and compared to the Aberdeen fund has less concentration in Latin America and Africa but more in developed Asia. Also has a higher proportion of small and micro market capitalisation than its Aberdeen equivalent.

Note: Just checked my platform (Best Invest) and it only offers Templeton Emerging Markets Smaller Companies A GBP Inc. A different beast entirely. Very heavy on emerging Asia and fund running since 2007.

Also found JPMorgan Emerging Markets Small Cap A (dist) GBP but not available on my platform.

I'm struggling to find anything else with a global emerging markets smaller company theme. Any suggestions?

Anybody investing in frontier markets?

JohnRo

I'll just stick with the monthly plan I think, the 2% additional charge is all going back into the fund itself so it isn't like the management fee is getting a 2% hike. New money after the charge is introduced shouldn't be affected by much if any drag on the funds performance itself surely?

There's obviously going to be a small windfall benefit to those with a large lump sum already invested, if they don't intend adding any more to the fund in future, but that's just a bonus for them and no reason to stop others investing regularly imho.

The charge is clearly designed to make people with new money looking for EM investment go "urgh" and look elsewhere.

ColdIron

I'd add a middling sum and continue with a slightly modified monthly plan, I'm not saying it's wise but that's just me. There don't seem to be many replacements for it and a good fund with a small entry charge must be better than a charge free middle of the road one

If you could move beyond smaller cos First State Global Emerging Market Leaders might be worth a look, obviously a different capitalisation but may similarities, sectors, geography etc. It woulld certainly be a good replacement for Aberdeen's regular EM fund

grey_gym_sock

TCA wrote: »

I found Templeton Emerging Markets Smaller Companies Fund Class W GBP (Acc) run by Mark Mobius. It's a new fund (doing well) and compared to the Aberdeen fund has less concentration in Latin America and Africa but more in developed Asia. Also has a higher proportion of small and micro market capitalisation than its Aberdeen equivalent.

Note: Just checked my platform (Best Invest) and it only offers Templeton Emerging Markets Smaller Companies A GBP Inc. A different beast entirely. Very heavy on emerging Asia and fund running since 2007.

i think they're different unit classes of the same fund - compare:

http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F00000OBVV
http://www.morningstar.co.uk/uk/funds/snapshot/snapshot.aspx?id=F000000L1Z

note that some ppl define developed asia vs emerging asia in different ways. also, some data may be more up-to-date than other data.

cashbackproblems

I invest in this though HL, will they also charge this 2%, i put in £50pm.