Lack of India and China exposure has hurt Lincoln's Emerging Markets fund, but the vehicle will outp...
Lack of India and China exposure has hurt Lincoln's Emerging Markets fund, but the vehicle will outperform when markets fall, according to senior analyst Stuart Tyler.
The £65m unit trust has underperformed since its inception in 2004, and has returned 33.6% against the sector average of 45.6% over the past year to 15 October.
However, Tyler said the defensive position will help when the region's growth falls.
"If you are concerned the market will dive off, then our fund is a good place to be," he added.
"It is a very defensive portfolio and we expect underperformance when the market goes up and outperformance when it falls.
"In the past three years, there have been no periods where the market has been down and all we can hope is to keep up.
"It is very difficult to call markets but the high expectations of China will disappoint people at some stage, hopefully soon from our perspective."
Manager Mondrian Investment Partners sold out of India two years ago because it was getting expensive, which has obviously damaged performance.
Mondrian is also underweight China and overweight in Korea, Brazil and Taiwan.