Hargreaves says it is disappointed by the overall fund performance which has struggled to deliver consistent results and attributes this to poor stock selection.
It says the fund, which is managed by Dr. Mark Mobius has a bias to the energy sector, in particular oil and gas and says this has been its downfall as these companies have suffered with softened commodity prices.
The firm says its significant exposure to financials has also proven to be a poor decision with the sector likely to suffer further globally.
HL says Aberdeen’s emerging markets fund, run by Devan Kaloo in London is a superior alternative. Head of research Mark Dampier says: “Although this is still an emerging markets fund and so relatively risky, this is not a racy approach which is precisely why the fund has been so successful, boasting a superb long term track record.
“The fund has been resilient in challenging economic conditions, which is testament to the skills of Aberdeen’s emerging markets team. Longer term, we believe this fund has the potential to deliver superior returns.”