Aberdeen's Kaloo: Asian asset allocation decisions have cost us

Anna Fedorova
clock

Aberdeen's head of global emerging market equities Devan Kaloo has admitted the significant underweight to Chinese equities - as well as an overweight to India - has hurt his flagship GEM fund so far in 2015.

The manager (pictured) of the soft-closed £1.9bn Aberdeen Emerging Markets Equity fund has attributed its recent underperformance to asset allocation calls in Asia, particularly its long-term underweight to China. Recent falls have taken the shine off Chinese stocks, but Hong Kong's Hang Seng index remains up 6.9% year to date, while Chinese mainland stocks are 21% higher over the same period. "The underweight to China has certainly cost the fund, as it has been the best performing market year to date," Kaloo said. "[This position has been driven] perhaps by our scepticism in the r...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Emerging markets

JPM AM's Hugh Gimber: Thinking more broadly about EM stocks

JPM AM's Hugh Gimber: Thinking more broadly about EM stocks

Client demand into region rising

Hugh Gimber
clock 26 March 2024 • 4 min read
Four Graphs explaining India

Four Graphs explaining India

Four experts write

Investment Week
clock 12 February 2024 • 4 min read
JEMI's Omar Negyal: Emerging markets are well positioned to support AI boom

JEMI's Omar Negyal: Emerging markets are well positioned to support AI boom

Early adaption is key

Omar Negyal
clock 11 January 2024 • 2 min read
Trustpilot