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

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...