Aberdeen Standard Investments (ASI) has launched the Aberdeen Standard SICAV I – Global Dynamic Dividend Fund to invest in a range of dividend-paying stocks across developed and emerging markets.
Aberdeen Standard is the asset management business of Edinburgh-based investment giant Standard Life Aberdeen and it manages global assets of about £456 billion.
The new fund is actively managed. It aims to outperform the MSCI AC World (Net) Index with a dividend yield greater than that of the benchmark before charges.
The new fund aims “to deliver both a premium, monthly income stream as well as potential capital returns.”
Managed by ASI’s global equities team, the fund invests in a portfolio of 80-100 stocks worldwide, diversified across sectors and geographies.
“The fund seeks to deliver a premium dividend income whether markets rise or fall, allowing investors to get paid to wait in a challenging market environment and benefit from potential capital appreciation when the markets recover,” said Aberdeen Standard.
“In addition to analysing companies’ fundamental strengths, the investment team harvests diversified sources of income by screening the global universe of 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.”
Josh Duitz, Senior Vice President – Global Equities, Aberdeen Standard Investments, said: “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 recoverwhen they are falling.”
Ben Sheehan, Senior Equities Investment Specialist , Aberdeen Standard Investments, said: “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.”