abrdn launches SICAV version of Emerging Markets Income Equity Strategy
10 April 2024abrdn has launched the abrdn SICAV I - Emerging Markets Income Equity Fund (‘the Fund’), which mirrors an existing in-house strategy launched in 2012 under a UK investment vehicle. This strategy is successfully managed by lead Fund Manager Matt Williams and supporting portfolio construction group in London and Singapore.
The Fund aims to achieve a combination of growth and income by investing in emerging markets (EM) equities. The team look for healthy businesses and profitable growth by analysing cash flow, prioritising companies on their ability to pay a dividend, in the context of where they are within their investment cycle.
The Fund takes a balanced two pillar approach to portfolio construction - 50% in high dividend, 50% in dividend growth. This balance combined with a style agnostic approach to stock picking across the breadth of the EM universe, aims to deliver a premium and growing income stream over various types of market environments as well as attractive upside and downside capture characteristics. Portfolio risk objectives are to prioritise risk towards the team’s stock specific insights and to provide diversification of income ideas whilst aiming to dampen country and sector risks. The Fund is not dependent on a concentrated group of high yielding stocks to deliver performance.
Matt Williams, senior investment director, abrdn, said:
"Emerging market investing is often associated with growth rather than income. However, data shows that there are now as many companies paying dividends in emerging markets as in developed markets. Having managed this strategy for over a decade, we can see a uniquely appealing income universe for active investors with a total return mindset. The growth of earnings and the compounding of dividends in EM equities can make for a powerful combination in portfolios, and we’re delighted to launch the SICAV bringing this opportunity to more investors.”
Devan Kaloo, global head of equities added:
“We have a 36-year track record of investing in emerging market equities. Matt and his portfolio construction group draw their insights from a highly experienced and well-resourced EM equities team. Our boots on the ground in crucial EM countries help support the Fund’s all-cap approach, exploiting additional income opportunities in small- cap and Frontier markets.”
Ends
About abrdn
- abrdn is a global investment company that helps clients and customers plan, save and invest for the future. Our purpose is to enable our clients to be better investors.
- abrdn manages and administers £495bn of assets for clients (as at 31 December 2023).
- Our strategy is to deliver client-led growth. We are structured around three businesses – Investments, Adviser and Personal – focused on their changing needs.
- The capabilities in our Investments business are built on the strength of our insight – generated from wide-ranging research, worldwide investment expertise and local market knowledge.
- Our teams collaborate across regions, asset classes and specialisms, connecting diverse perspectives and working with clients to identify investment opportunities that suit their needs.
- As at 31 December 2023, our Investments business manages £367bn on behalf of clients - including insurance companies, sovereign wealth funds, independent wealth managers, pension funds, platforms, banks and family offices.
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