Returns and volatility of funds over 5-yrs
| Fund |
1-yr returns (%) |
3-yr returns (%) | 5-yr returns (%) | 5-yr volatility (%) |
| Aberdeen Emerging Markets |
7.72 |
128.29 |
105.67 |
21.8 |
| Aberdeen Global Asian Smaller Companies |
9.68 |
148.81 |
122.90 |
18.8 |
| Aberdeen Global Emerging Markets Equity |
7.84 |
124.80 |
107.69 |
21.8 |
| Aberdeen Global Emerging Markets Smaller Companies |
10.54 |
180.83 |
105.77 |
23.5 |
| First State Asia Pacific |
7.78 |
92.11 |
93.11 |
18.8 |
| First State Asia Pacific Leaders |
8.25 |
84.45 |
98.00 |
18.6 |
| First State Global Emerging Markets |
8.52 |
103.19 |
98.34 |
18.8 |
| First State Global Emerging Markets Leaders |
11.03 |
96.33 |
101.11 |
17.8 |
Source: FE Analytics
Over five years the fund houses’ range of Asia and emerging markets vehicles have returned more than their peers while being less volatile, and there is little between them in terms of performance and risk.
Aberdeen’s Emerging Markets Smaller Companies fund has the edge over three and five years, but investors should be aware that the fund tends to lose more in downward-moving markets. Anyone who put their money into the fund one year ago would have lost 11.6 per cent by October but would now be sitting on returns of 10.54 per cent. This is reflected in the volatility; the fund has the highest score of the eight funds in the sample, at 23.5 per cent.
The $1.2bn fund's biggest holdings include retail companies SPAR, Aeon and Makro. Its highest weighting is to consumer products, with a 34 per cent exposure compared with 16.4 per cent from the average fund in the sector. It has five FE crowns and a TER of 2.13 per cent.
Performance of fund vs sector over 5-yrs
Source: FE Analytics
Since launch in 2007, the fund has returned 106.2 per cent, while the average fund in the IMA Global Emerging Markets sector has returned 52.4 per cent.
Investors looking for a less volatile vehicle may prefer the First State Global Emerging Markets Leaders fund. Run by Jonathan Asante and Glen Finegan it has returned 273.8 per cent since launch.
Performance of fund since launch vs sector
Source: FE Analytics
It differs from the similarly named First State Global Emerging Markets fund in that it has a slightly more concentrated portfolio – around 60 stocks compared with around 80. There is some crossover in their top-10 holdings; Taiwan Semiconductor, Hong Kong & China Gas and Anheuser-Busch Inbev appear in both funds.