The investment objective of the Emerging Markets Fund is to grow the real value of investors’ capital and income. Investments will be in companies operating or incorporated in emerging markets. An equal emphasis will be placed on the generation of income and on capital growth. More information is available in the fund's Key Investor Information Document.
Why invest in the Emerging Markets Fund?
The Emerging Markets Fund aims to identify companies with the potential to grow faster than their developed market peers over the long term. It offers exposure to investments that otherwise would be difficult and expensive for an individual to construct, particularly those with smaller sums to invest.
The fund has a long, public track record and – like all our investments – is managed according to our ethical principles.
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Experience suggests that better investment results arise from a long-term investment approach with a focus on quality. We seek companies with sustainable growth prospects, strong business models, sound balance sheets, and often a growing stream of dividends.
We take a collegiate approach to stock selection and monitoring and our investment staff draw on a deep well of experience in the analysis of emerging markets. We have chosen as a matter of principle to invest directly, keeping full control over every investment.
Keppel, a Singaporean conglomerate specialising in offshore & marine and asset management, was sold from the portfolio due to concerns about its growth prospects. Earnings had been partially supported by property and other businesses, but visibility is limited and we felt there were more attractive opportunities elsewhere.
Midea was added to the portfolio. Based in China, it is a global leader in Heating Ventilation and Air Conditioning systems, as well as home appliances, smart logistics, and automation. It also has a digital business centred on smart supply chains, Industrial Internet of Things (IIOT) and silicon chips. The company’s scale brings distribution advantages in China, as well as significant R&D spending globally. It stands to benefit from continuous upgrades in technology by the increasing number of middle class consumers.
Commentary updated on 24th February 2021.
Whose needs is this fund designed to meet?
Whilst the fund is suitable for most retail investors, it is not suitable for investors who require full capital protection. Investors should have a medium to long-term investment horizon (3-5 years) and accept that the value of their investment will fluctuate. The fund will however allow ready access to the investment.
How is the fund structured?
The fund is a UK UCITS authorised unit trust. This means that the manager must follow minimum standards, including holding a diversified portfolio, publishing clear guidance on charges and taking steps to safeguard investors' money. Its structure provides investors with certain institutional safeguards and simplicity of administration.
There are also tax considerations: individuals can defer incurring capital gains tax until units in the fund are sold, and the portfolio of underlying investments are managed without tax constraints.
The fund holds a portfolio of direct investments in a diversified range of emerging market equities, as shown on the chart below. Individual investments and geographic allocations are continually reviewed and adjusted, according to their relative risks and opportunities.
Asia ex. Japan (71%)
Latin America (14%)
Emerging Europe (6%)
Target portfolio allocations as at 30th June 2021. Actual allocations may vary. *Incl. cash and UK companies whose main operations are in emerging economies.
Total return on investment to 30th June net of charges and assuming re-investment of dividends
The graph shows the growth in an initial investment of £1,000 over the time period selected assuming reinvestment of income on the xd date. The table shows total return as a percentage in UK sterling including the reinvestment of income on the xd date.
The Annualised Return represents the average annual return of the fund over a set number of years. It is calculated using a geometric average which means that it captures the effects of compounding over the years.
You can assess how well the fund has performed against its objective to grow the real value of investors' capital and income by referring to the change in the UK Retail Price Index (RPI) over the same period.
Please note that the returns shown are historic and should not be taken as a guide to or guarantee of likely future returns. Please be aware that the value of investments and the income they generate may go down as well as up.
Current price per personal unit 1
Change in price (+/-)
Historic dividend yield 2
Minimum initial investment
Regular saving facility
£100 minimum monthly investment
Additional investment availability
ISA, JISA, SIPP
Ongoing charges figure
Fund launch date
1 March 2007
UK UCITS authorised unit trust
1 at 12 noon on 30/07/2021
2 Historic dividend yield reflects distributions declared over the past 12 months as a percentage of the unit price. You should remember that the price of units and the income from them may go down as well as up. Past performance should not be used as a guide to future performance.
1 A Legacy Class Unit (SEDOL B1RWXF1 & ISIN GB00B1RWXF12) existed until the legacy class was closed on 21st December 2016. The Legacy Class Unit was the only class of unit until 1st January 2013 when it was replaced as the principal unit class by the Personal Class Unit. The Personal Class Unit is the only class of unit now available.
Individuals aged 18 or over who are investing in their own name may purchase units in non-ISA and ISA accounts. If your portfolio is to be held in joint names, the initial investment cannot be made online.
Existing investors may make further investments by telephone. Receipt of cleared funds by bank transfer is required before the order is accepted. Please note we cannot accept ISA investments by telephone. To invest, please call us on 01620 825 867. When placing your order the call will be recorded.
Invest by post
Print the required form then complete and post your application.
To make initial lump sum investments or set up regular savings