Edinburgh-based investment giant Aberdeen Standard Investments (ASI) said on Monday it has launched a new Global Innovation Equity Fund “seeking to invest in companies with strong cultures of innovation across the globe.”
The Luxembourg-domiciled Aberdeen Standard SICAV I – Global Innovation Equity Fund will invest in all-caps and will not be restricted to the technology sector.
“The investment approach will deliberately transcend geographies and sectors so as to capture the innovations that lead to change throughout society and as such, seeking to drive positive returns for investors,” said Aberdeen Standard.
Aberdeen Standard Investments manages about £456 billion of assets worldwide and is the asset management business of Edinburgh-based Standard Life Aberdeen.
Andy Brown, Investment Director at Aberdeen Standard Investments said: “At ASI, we think that companies with an innovative culture can build lasting competitive advantages and benefit from profound changes in their markets or businesses.
“Throughout history, successive waves of innovation have driven economic progress.
“Over the last 250 years there have been six major ‘waves’ of innovation.
“From steam power to automation, these waves tend to last decades. This makes them durable drivers of growth.
“By identifying these waves and finding innovative companies that will benefit them, we can make investment decisions that play out over not years, but decades.”
The fund will be managed by a portfolio construction group (pod) within ASI’s Global Equities team and will also benefit from the expertise of ESG experts at ASI.
“The fund aims to provide long term growth by investing at least two thirds in companies listed globally of all sizes whose business models are focused on and/or benefit from all forms of innovation,” added Aberdeen Standard.
“ASI believes these innovative companies are able to drive outsize investment returns by capturing the bulk of the economic value created by waves of innovation.
“By investing in such companies, ASI’s aim over the decades to come is to stay at the forefront of progress on its clients’ behalves.
“The fund aims to outperform the MSCI AC World Index (USD) benchmark before charges.”