Aberdeen Emerging Markets – 10.6% a year for 20 years

Aberdeen Emerging Markets (AEMC) will be 20 years old on 22 June 2018. This is no small feat; it has survived numerous crises in emerging markets (EM), the distortions of ‘hot money’ (where investors flood into, and later out of, whichever market or sector happens to be fashionable) and a long-standing market focus on growth sectors (which does not suit the managers’ value-investment style). Furthermore, since launch, it has delivered an NAV return of 646% or 10.6% a year, ahead of the MSCI Emerging Markets Index, 541% or 9.8% per annum, and well ahead of the MSCI World Index, 256% or 6.6% per annum*.

* All figures to end May 2018

Consistent outperformance of MSCI Emerging Markets Index

AEMC invests in a carefully selected portfolio of both closed-and- open-ended funds, providing a diversified exposure to emerging economies. It aims to achieve consistent returns for its shareholders in excess of the MSCI Emerging Markets Net Total Return Index in sterling terms.

Still standing, still relevant

It is almost 20 years since AEMC was launched. The world has changed much since 1998 and AEMC has evolved with it. The first QuotedData note, which was published in September 2017, described the many initiatives that AEMC has instigated in recent years to maintain its position, including a reduction in fees, the introduction of the dividend, putting a borrowing facility in place and the team’s move to Aberdeen Standard Investments.

The two lead managers, Andrew Lister and Bernard Moody, have been involved with the management of the trust since October 2000 and August 2006, respectively.

AEMC : Aberdeen Emerging Markets – 10.6% a year for 20 years