By MARCEL PORCHERON 30/06/2009
These smaller companies are generally more exposed to their domestic economies and as a result they are typically less dependent on demand from the Western economies that are slowing down, unlike some larger companies listed in the emerging markets. We believe that GEM smaller companies are an attractive area to invest in for the medium to long term, although investors should note that there are higher risks involved as smaller companies’ shares are less liquid than larger companies’. A small allocation to this fund is suitable for aggressive portfolios. Aberdeen’s Smaller Companies fund currently has eight companies in common with the core Emerging Markets Fund, which account for 12.6% of the small cap fund’s assets.
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