3 Top Rated Trusts on Double-Digit Discounts

This trio of emerging market equity-focused closed-end funds have seen their discounts widen up to 35% year-to-date due to weakening sentiment. Are they now bargains?

David Brenchley 24 July, 2018 | 7:35AM

Beijing, China, emerging market equities, emerging markets, investment trusts, donald trump, trade war

Fears over a potential trade war has hit performance of some of the top emerging market funds and investment trusts. It’s no surprise, therefore, that sentiment towards emerging market equities has waned since Donald Trump upped his rhetoric against China in recent weeks.

Two barometers of investor sentiment released in the past week have shown a growing rotation away from emerging market equities. The Bank of America Merrill Lynch fund manager survey for July noted professional investors’ allocation towards emerging market equities saw the largest monthly drop in two years, down 23 percentage points to a net 1% underweight.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Aberdeen New Dawn Ord258.00 GBX-0.77
Alibaba Group Holding Ltd ADR261.01 USD-0.22
Baidu Inc ADR132.33 USD-0.15
JPMorgan Chinese Ord522.00 GBX-1.51
Tencent Holdings Ltd546.50 HKD-2.93
Witan Pacific Ord344.00 GBX-0.58

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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