Emerging Markets funds and investment trusts.

mf78

Hi all.

I'm about to top up my SIPP and am going to add about 1k to my emerging markets allocation. My current fund for this is the First State Emerging Market leaders, and as this has soft closed adding further to it would come with a 10% entry fee (via Youinvest) so is poor value. I've been looking for an alternative, or rather another fund or investment trust to hold alongside it. Anyone have any suggestions that I should look further into? I've had a quick look and a couple that have caught my eye are:

Baillie Gifford Emerging Markets B Acc
M&G Global Emerging Markets I Acc
Templeton Emerging Markets (TEM)
JP Morgan Emerging Markets (JMG)

I want to keep costs down reasonably, but don't want a tracker for this particular allocation. Although the funds appear slightly cheaper than the IT's, Youinvest currently stick a 0.2% holding fee on top of funds (which is tempting me towards IT's and ETF's for my various holdings), vs nothing for IT's, and as long as that stays true the end result is not a lot of difference. I add lump sums to my SIPP about 3-4 times per year, and probably wont need to add more to this allocation for atleast a year, so dealing costs aren't a major issue. Investing for a minimum of 20 years.

So with that in mind, which of those have you chosen and why, and which other ones shall I check out before making a decision?

gadgetmind

Maybe have a look at Henderson Far East Income?

Glen_Clark

Be aware the FTSE 100 gets 33% of its profits from Emerging Markets, so you don't need an expensive fund to get EM exposure.

ColdIron

I've always felt that JP Morgan Emerging Markets was a classic Wealth 150 dog

Glen_Clark

ColdIron wrote: »

I've always felt that JP Morgan Emerging Markets was a classic Wealth 150 dog

Did Hargreaves Lansdown have Investment Trusts like JMG in their Commission 150 :eek:

ColdIron

Glen_Clark wrote: »

Did Hargreaves Lansdown have Investment Trusts like JMG in their Commission 150 :eek:

Nope, apols, I was referring to the fund

takesyourchances

I have the first state emerging markets in my ISA with HL, with the soft close if adding any more in is it a 10% entry fee with HL?

I was going to add 500 or so in April but If it costs 10% I may need to rethink also.

Thanks

gadgetmind

takesyourchances wrote: »

If it costs 10% I may need to rethink also.

If you pay the 10%, then you may need a new brain!

takesyourchances

gadgetmind wrote: »

If you pay the 10%, then you may need a new brain!

Your right there gadgetmind:rotfl:

Maybe I worded it wrong, I did not know about the 10% on new money into the fund, I take it that is across the board on all platforms paying in?

I will have to leave my First State as it is and also its at -10% so not looking to pay 10% on new money.

I will need to think of a new EM holding to pay into and leave the First State as it is.

Any ideas to consider be good to look over:)

ColdIron

There is no evidence at HL that they are charging 10%, mf78 references Youinvest. I'd contact HL and ask them before abandoning it

mf78

ColdIron wrote: »

There is no evidence at HL that they are charging 10%, mf78 references Youinvest. I'd contact HL and ask them before abandoning it

Indeed, and the 10% doesn't appear in the literature on the fund, only when you go to deal in it. It appeared under "Initial charge" when I went to place a purchase order for more shares in the First State fund. Glad I noticed it! After a bit of testing I found it also appeared if I tried to purchase more Cazenove UK Smaller Companies, which has also soft-closed, but didn't appear on any of the other funds in my SIPP. So I assumed it was an extra levy on soft-closed funds, but I could be wrong.