Aberdeen's Diment halves FX exposure as EM currencies tumble

Aberdeen's head of emerging market debt has halved currency exposure in his fund after emerging currencies failed to deliver the returns he expected in 2013.

Brett Diment has reduced currency allocation in the fund from 18% at the start of 2013 to around 9% after a number of key currencies, including the Turkish lira and the South African rand, fell sharply in the January sell-off. “FX risk hurt our performance the most last year, so we have cut back on our currency exposure,” he said. “We now only have currency exposure in Mexico, India, the Philippines and a bit in Uruguay, and the rest is hedged back into sterling.” Over one year to 18 February, Aberdeen Emerging Markets Bond fell 6%, according to FE, but this is still significantly les...