Global asset manager Aberdeen Standard Investments (ASI) has, on Oct 14, announced the launch of the Aberdeen Standard SICAV I – Global Dynamic Dividend Fund.
The Luxembourg-domiciled fund has been registered for sale to professional and retail investors in Singapore and Hong Kong.
Managed by ASI’s global equities team spanning 14 markets, the fund will invest in a portfolio of 80 to 100 stocks globally across developed and emerging markets with a bottom-up investment strategy that’s driven by environmental, social and governance (ESG) factors.
The fund also aims to outperform the MSCI AC World (Net) Index (USD) with a dividend yield greater than that of the benchmark.
According to Aberdeen’s statement, the fund seeks to deliver a premium dividend income to investors independent of the market’s performance. This allows investors to “get paid to wait in a challenging market environment and benefit from potential capital appreciation when the markets recover,” it says.
In addition to analysing companies’ fundamental strengths for the fund’s portfolio, Aberdeen says its investment team also looks at diversified sources of income through dividend-paying stocks.
“To enhance portfolio yield, the fund combines long-term investment in companies paying regular dividends with tactical trades in stocks paying special and regular dividends. It invests in value and growth stocks to maintain a balanced, diversified profile,” it adds.
Josh Duitz, senior vice president of global equities at Aberdeen Standard Investments says, “Investors today need equity income more than ever, with a staggering 15 trillion dollars in bonds globally providing negative yields.”
“During this prolonged period of market volatility, the strategy provides a unique solution blending income and growth opportunities, aiming to help investors to diversify and capture market upside while getting paid to wait for markets to recover when they are falling,” Duitz adds.
Ben Sheehan, senior equities investment specialist for APAC at Aberdeen Standard Investments notes, “Global equities have a long history of strong dividend growth. Despite the headlines of dividend cuts or delays given the impact of the coronavirus pandemic, there remains a huge global universe of stocks that continue to pay out.”
“With low correlation to other income-yielding asset classes, equity income is a great diversifier for investment portfolios. The global demographic shift of ageing societies has exacerbated investors’ search for yield to fund their retirements, and this trend is particularly prevalent in Asia,” Sheehan adds.
See: AIIB and Aberdeen Standard to create US$500 mil portfolio of green infrastructure bonds
