Abrdn focuses multi-asset fund on international equities
Abrdn has changed the allocation ranges of its Multi-Asset Income Fund to allow it to invest up to half the fund in international equities.
From 29 September, the asset allocation range for international equities in the $80 million Multi-Asset Income Fund will increase from 0–15 per cent to 0–50 per cent.
The weighting to Australian equities will remain the same at 0–50 per cent but abrdn noted the overall weighting to growth assets, which includes equities and alternatives, cannot exceed 75 per cent.
Allocations to alternatives will increase from 0–15 per cent to 0–35 per cent and now include real estate investment trusts, which abrdn has reclassified to reflect their underlying illiquid exposure.
On the fixed income side, this will now be divided into investment and non-investment grade assets with a range of 0–75 per cent for investment grade and 0–35 per cent for non-investment grade.
To allow for this, the fund’s weighting to property securities and sub-investment grade credit will be both reduced to zero.
Over the year to 31 July, the abrdn Multi-Asset Income Fund has returned 7.4 per cent versus the RBA cash rate of 4.1 per cent.
Abrdn said: “The introduction of additional asset classes, an increase in the allocation to growth assets will provide the fund with greater diversity and additional flexibility to meet its income and capital growth objectives.
“While the fund will continue to invest the majority of its equity exposure in Australian equities, we believe it is prudent to allow an increase in income-producing international equities and, to a lesser extent, alternatives. This will add to the fund’s diversification, as it will broaden the sources of income received into the fund.”
The same benchmark ranges will also apply to its $99 million Multi-Asset Real Return Fund from 29 September.
Earlier this year, abrdn signed a distribution agreement with SG Hiscock to distribute the multi-asset funds in Australia and manage the Australian equities portion as well as abrdn’s dedicated Australian equity funds.
AUTHOR
Laura Dew
Recommended for you
Pinnacle has reported a 151 per cent rise in net profit after tax in its half-year results, helped by overseas expansion and affiliate performance fees with further international deals in the pipeline.
Global asset manager Janus Henderson generated more than US$2 billion in net inflows during 2024, thanks to its strengthened intermediary channel and M&A activity.
Amid the rising demand for more flexible private equity investment options, LGT Capital Partners has launched a semi-liquid fund for wholesale investors in Australia and New Zealand.
The departure of Gerald Stack from Magellan could lead to redemptions as high as $8 billion, according to Morningstar, given the majority of assets in his infrastructure strategies are held by institutional clients.
