Popularity in the face of underperformance.

Investment Adviser, November, 2007

Byline: Aberdeen fund manager Fiona Gillespie talks to Laura Mossman about why her fund has seen huge inflows in the past year

The most noticeable thing when examining the Aberdeen Multi-Asset fund is the huge inflows of new investments it has experienced over the last year, which came in spite of a fall away in performance. Indeed, from the period from July 2006 to July 2007 the fund mushroomed by 316 per cent, from AGBP125.5m to AGBP521.9m, making it by far the fastest growing fund in the sector.

However, the performance has been less convincing, with returns of 8.7 per cent over one year compared to a sector average of 9.6 per cent. It underperformed even more dramatically over three months, over which time it fell 0.9 per cent compared to a sector...

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