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Aberdeen brings LatAm fund onshore

Aberdeen Asset Management – Latin American Equity Fund

Type: Oeic

Aim: Growth and income by investing in Latin American equities and related securities

Minimum investment: Lump sum £1,000, monthly £50

Investment split: 100% in Latin American equities and related securities

Isa link: Yes

Charges: Initial 4.25%, annual 1.75%

Commission: Initial 3%, renewal 0.5%

Tel: 0800 592 487

This fund aims for income and growth by investing in Latin American equities and related securities. This will include the equities and related securities of companies based in a country in Latin America or those based elsewhere for which the main trading market is in Latin America.

Putting the fund in to its market context, Hargreaves Lansdown investment manager Ben Yearsley says the number of Latin American funds on the market is surprisingly small considering the performance over the last five years or so of the sector.  He says: “Despite Aberdeen’s pedigree in emerging markets, it is surprising it has taken this long to launch a pure onshore Latin American fund.  There are two clear leaders in emerging market equities, First State and Aberdeen and it is no surprise that if you want any Latin American equity investing you should really consider these two houses. “

Yearsley adds that it is interesting  that First State launched its Latin American fund  only about 18-20 months ago.  “I like Aberdeen’s investment approach; it looks for good long term quality businesses that hopefully prosper whether or not markets are frothy.  Indeed if you look at Aberdeen’s Asian funds, many of the biggest holdings have been in the portfolio for at least five years or more.”

Yearsley likes Aberdeen’s  investment strategy and feels it is well suited to investing in emerging market and Asia. Assessing the charges, he says: “The charges are fairly standard although 1.75 per cent could be considered a bit high as an annual management fee. Apart from that,  the charges look fairly standard.”

Turning to the potential drawbacks Yearsley says: “There is nothing to particularly dislike about this fund launch, apart from why didn’t Aberdeen launch it earlier!  I like the fund, I like the team and have every confidence in their long term success.”

Discussing the competitors Aberdeen could face, Yearsley says the main contender is First State in terms of style of management. “But there are some longer standing funds in the market such as Invesco Perpetual and Threadneedle.  However I personally believe that First State is Aberdeen’s closest competition in terms of both style and longevity of management.”

Summing up Yearsley says: “Latin America is a volatile area but the long term potential is excellent.  This fund is one to buy and tuck away and don’t get too concerned when markets, or maybe use that as an opportunity to buy some more.”

BROKER RATINGS

Suitability to market: Good

Investment strategy: Good

Charges: Average

Adviser remuneration: Average

Overall 8/10

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