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Aberdeen Standard re-opens Kaloo fund after assets plunge

Aberdeen Standard re-opens Kaloo fund after assets plunge

Aberdeen Standard Investments has removed the 2% entry fee it adopted when it soft-closed the Aberdeen Global Emerging Markets fund in March 2018.

The house re-opened the Devan Kaloo (pictured) managed fund after assets plunged from a peak of $3 billion (£2.3 billion) to a current $1 billion.

Sentiment towards EM was at the time peaking on a surge of US dollar liquidity. Having since gone experienced a bear market and tepid recovery, appetite for the fund has also been hampered by idiosyncratic performance challenges with the portfolio near the back of its peer group over one, three and five years.

Documents seen by Wealth Manager sister title Citywire Selector show that the fund, officially called Aberdeen Global Emerging Markets Smaller Companies, was fully reopened to new investors on 3 December 2018.

The investable universe had also expanded significantly in the more than five years since it was closed, the company added.

Osamu Yamagata, an investment manager at Aberdeen Standard said: ‘The composition of the benchmark and our investable universe is changing. There are more opportunities and the liquidity means we have the ability to invest in new areas.

‘If you look at it now, we have around 1,700-1,900 stocks in our investable universe, and, while we tend to run a 70-position portfolio, that gives us increased opportunities without distorting or disrupting the investment philosophy.’

On a three-year, absolute return basis to the end of October 2018, the Aberdeen Global Emerging Markets Smaller Companies fund returned 4% in US dollar terms. Its Citywire-assigned benchmark, the MSCI EM (Emerging Markets) Small Cap TR USD, rose 14.3% over the same period.

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Devan Kaloo
Devan Kaloo
189/251 in Equity - Global Emerging Markets (Performance over 3 years) Average Total Return: 45.00%
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