Aviva Investors’ multi-manager team is set to replace the £3.4bn Aberdeen Emerging Markets fund with the £70m T. Rowe Price Emerging Markets Stock fund as part of its multi-manager range.
The T. Rowe Price Emerging Markets Stock fund will be added this week across the Aviva Investors portfolios.
The fund is co-managed by Gonzalo Pangaro and Mark Edwards.
Aviva Investors head of multi-manager research Ian Aylward says: “We have been happy holders of Aberdeen’s emerging market mandate for five
“But its assets are now too large, making it difficult for them to be nimble and rotate the portfolio. Their particular style tends to focus on high quality names which has been a sweet spot, making further outperformance challenging.”
The Aberdeen Emerging Markets fund was soft-closed earlier this year alongside other emerging market mandates provided by the asset manager. Last month, Aberdeen reported £900m worth of outflows across its emerging markets equities range, amid £3.4bn net outflows in its financial third quarter.
Aylward says that although T. Rowe Price has a low profile in Europe, it is one of the
largest asset managers in the US. He adds: “We have found a good global emerging market manager to replace Aberdeen.”
Skerritts head of investment Andy Merricks says: “It must be a big risk having a big fund like Aberdeen or First State in what is still a relatively illiquid market. You cannot help being fearful of what would happen if there is a big sell-off.”