December, 2020
The Fund returned -0.69% in December (before fees), outperforming the benchmark by 0.50%. The Fund outperformed the benchmark over the period, driven by strong country selection. On a country level, the biggest contribution was from the overweight position in Brazil. Strong stock selection in Mexico was supportive for returns over the month. The Fund’s relatively new overweight position in the Turkish lira also added to outperformance, following an interest-rate hike on Christmas Eve.
In addition, underweight exposure to China was positive for the Fund, with currency factors again playing a large part. On the negative side, the worst-performing position was Chile, where the peso’s performance dragged on returns. An underweight South African rand position, resulting from a partial hedge of our overweight in bonds, also dragged. Off-benchmark positions in Ukrainian government bonds, as well as the German supranational bank KfW, weighed on the Fund’s performance, mostly as a result of currency effects.
We increased our Latin American overweight over the month, buying a 2030 Chilean issue as well as 2029 and 2031 Brazilian government bonds. In addition, we bought a 2029 Hungarian bond, reducing our underweight position. We closed out our position in the Dominican Republic, taking profits after a run of good performance.
File: https://commentary.quantreports.net/wp-content/uploads/2021/01/163760767.pdfticker: EQI0699AU
release_schedule: Quarterly
commentary_block: Array
factsheet_url:
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manager_contact_details: Array
asset_class: Fixed Income
asset_category: Bonds - Emerging Market Debt
peer_benchmark: Fixed Income - Bonds - Emerging Debt Index
broad_market_index: Global Aggregate Hdg Index
structure: Managed Fund
fund_features:
Aberdeen Standard Emerging Market Local aims to outperform the benchmark, the J.P.Morgan GBI-EM Global Diversified Index AUD Unhedged, over rolling three year periods. The Fund invests primarily in emerging market currencies and emerging market local currency-denominated debt and debt-related securities.
- Manager Address : Level 10 255 George Street, Sydney, NSW, 2000
- Phone : +61 2 9950 2888
- Website : https://www.aberdeenstandard.com/australia/investor
- Contact Email : client.service.aust@aberdeenstandard.com
- Contact Page : https://www.aberdeenstandard.com/en/australia/investor/contact-us?country=Australia