New Aberdeen income fund hits milestone
The emerging market specialist has a new fund on offer in the increasingly popular global equity income sector.
Aberdeen World Growth & Income
, a global equity income fund from emerging market specialists Aberdeen, has hit its three-year anniversary, passing the milestone that makes it investable for many IFAs.
The fund offers an above average yield for its IMA Global Equity Income sector of 4.5 per cent, making it attractive for those looking to broaden out their income exposure from the UK, although from a growth point of view its figures are unexceptional.
Since 14 October 2009 the fund has made 26.77 per cent, beating its MSCI World benchmark, which has made 22 per cent, and the IMA Global Equity income sector average of 26.14 per cent.
Performance of fund versus sector and benchmark over 3yrs
Source: FE Analytics
The fund has achieved this with an annualised volatility of 14.24 per cent, lower than its benchmark’s score of 16.21 per cent.
Recent fund sales data has underlined the popularity of global equity income funds, with Cofunds data for August showing five FE-crowned Newton Global Higher Income was the best-selling fund through the platform
The £2.91bn portfolio, run by FE Alpha Manager James Harries
and, since August of this year, Nick Clay, has made 34.15 per cent over three years, although with an income – 4.26 per cent – slightly lower than that of the Aberdeen fund.
Aberdeen World Growth & Income has seen strong inflows in recent months, growing by 51.86 per cent in the year-to-date, according to data from FE Analytics
, despite investment returns of just 5.72 per cent.
The fund is 12 per cent invested in Brazil, which is its second most-favoured country, and the only emerging market in a top four which includes the UK, the US and Switzerland.
The fund has large holdings in UK equity income favourites such as Vodafone, BAT and Shell, and adds to these with Philip Morris and Johnson & Johnson in the US and Roche Holdings in Switzerland.
It is available with a minimum initial investment of just £500 and has a total expense ratio (TER) of 1.66 per cent, lower than the sector average.
The investment house has a second fund hitting its three-year milestone this month, although it is questionable whether it is a new fund.
Aberdeen European Frontiers
was formed in October 2009 from the Aberdeen International Funds ICVC Aberdeen European Frontiers fund.
The reformation of the older portfolio followed a poor 2008, in which it lost 57.17 per cent according to Aberdeen’s figures; the portfolio did make back 54.13 per cent in 2009 however.
Since October 2009 the fund has performed roughly in line with its MSCI EM Europe 10-40 index, making 8.07 per cent while the index is up 8.82 per cent.
Performance of fund versus benchmark over 3yrs
Source: FE Analytics
The fund is heavily invested in financials and energy stocks, with the two sectors making up 56 per cent of its holdings.
The top three positions are in Russian energy and banking stocks, and make up more than 25 per cent of the fund’s investments.
The portfolio has a minimum investment of £500 and TER of 1.77 per cent.