HL News / Summary24 Sep 2013 13:28
Shares in Aberdeen Asset Management have fallen by a fifth since the end of May. The fund manager has about 40% of its assets in emerging markets or Asian ones, and these saw a sharp flight of capital in the summer after indications that the US Federal Reserve would start to taper off its quantitative easing stimulus programme. However, the investment case for emerging markets remains as strong as ever, in terms of economic growth, demographics and the rest. Not only that, but most of the firm's clients are institutional, which means that they are less likely to run at the first sign of tensions.
There is also the strong prospect of a return of capital to shareholders, probably a shares buy-back. So while quantitative easing, which is good news for such high-yielding stocks, will have to end some day, the current share price seems to be offering an attractive entry point. Buy, says The Times's Tempus column.