Manager Review
Devan Kaloo, who joined Aberdeen in 2000, is the head of the emerging markets team and the key investment personnel for this strategy, Sim said.
Kaloo joined Aberdeen from Martin Currie and was promoted to the global head of equities in July 2015, taking over from Hugh Young, who took a broader role within the firm.
The Schroder fund is managed by Allan Conway, who is the head of the emerging markets equities. He joined Schroders in October 2004.
Conway is supported by four emerging markets managers (Robert Davy, Waj Hashmi, James Gotto, and Tom Wilson), who have responsibility for portfolio construction and stock-picking in specific countries across all three regions (Asia, Latin America and EMEA), Sim said.
Effective 1 August 2016, Tom Wilson will be taking over from Conway – who is retiring – as the head of emerging markets, having joined Schroder as a graduate in 2001 and working his way up in seniority through a number of roles, most recently the global emerging markets portfolio manager and the head of research, Sim said.
Fees
According to their respective factsheets, the Aberdeen fund has a stated average initial charge of 5% and maximum charge of 6.38%, which realistically in the current climate, would not see investors being charged this high, Sim said.
The Schroder fund has a sales charge of 5%, he said.
The annual management fee for the Aberdeen and the Schroder funds are 1.75% and 1.5%, respectively, he said.
“These are mostly in line with the market, and where fund selection is concerned would be secondary if the funds are able to deliver expected results.”
Conclusion
“Although both funds are invested in the emerging markets and are large-cap bias with a blend style, they do provide different food for thought to different customers,” Sim said.
Customers seeking a more concentrated approach with a low North Asia focus would find the Aberdeen fund suitable, although the larger fund size may provide an additional point of consideration for them, he said.
The Schroder fund, on the other hand, could appeal to investors looking at returns closer to the broader market, but they would have to be comfortable with the change of the lead manager later in the year, he added.
“But if a choice has to be made, the Aberdeen fund stands out due to its more superior returns, especially in the shorter and longer term, notwithstanding a higher volatility measure,” Sim said.
