ABERDEEN STANDARD INVESTMENTS LAUNCHES GLOBAL DYNAMIC DIVIDEND FUND14 October 2020
- The Fund invests in global equities and equity-related securities of companies which pay or are expected to pay dividends.
- The Fund adopts a dynamic dividend strategy, which may not successfully achieve the desired results of increasing the overall income generated under all circumstances and market conditions. The investments of the Fund may be periodically rebalanced, and the Fund may incur greater transaction costs than a fund with a static allocation strategy.
- The Fund may be concentrated in a certain geographical region or economic sector from time to time. The value of the Fund may be more susceptible to adverse economic, political, policy, foreign exchange, liquidity, tax, legal or regulatory events affecting that particular geographical region or economic sector.
- Smaller companies are subject to the risk of greater vulnerability, and are generally of lower liquidity and greater volatility than larger companies.
- The Fund’s net derivative exposure may be up to 50% of the Fund’s net asset value and subject to counterparty/credit risk, liquidity risk, valuation risk, volatility risk and over-the-counter transaction risk.
- The Fund may enter into securities lending transactions that may involve the risk that the borrower may fail to return the securities lent out in a timely manner and the value of the collateral may fall below the value of the securities lent out.
- The Board of Directors of Aberdeen Standard SICAV I may at its discretion pay dividends out of the capital of the Fund or pay dividends out of gross income while charging/ paying all or part of the Fund’s fees and expenses to/ out of the capital of the Fund, resulting in an increase in distributable income for the payment of dividends by the Fund and therefore, the Fund may effectively pay dividends out of capital.
- Payment of dividends out of capital amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment. Any distributions involving payment of dividends out of the Fund’s capital or payment of dividends effectively out of the Fund’s capital (as the case may be) may result in an immediate reduction of the net asset value per share.
- Investment in this Fund may involve a high degree of risk and may not be suitable for all investors. It is possible that the entire value of the investment could be lost.
- Investors are responsible for their investment decisions and should ensure that the intermediary has advised on the Fund's suitability and consistency with their investment objective. If in doubt, please seek independent financial and professional advice.
- Investors should not invest in this Fund based solely on this document and should read the relevant offering documents (particularly the investment policies and risk factors) for more details before investing.
Aberdeen Standard Investments (ASI) has launched the Aberdeen Standard SICAV I – Global Dynamic Dividend Fund (the “Fund”). The Fund will invest in a range of stocks across developed and emerging markets, aiming to deliver both a premium1, monthly income stream2 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, with a bottom-up, ESG3-embedded investment strategy.
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.
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.
Leveraging global expertise and local insights, ASI’s Global Equities team of 140+ equity professionals across 14 markets has a long track record of delivering superior outcomes for a range of equity income strategies.
Josh Duitz, Senior Vice President – Global Equities, Aberdeen Standard Investments, commented: “Investors today need equity income more than ever, with a staggering 15 trillion4 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 recover when they are falling.”
Ben Sheehan, Senior Equities Investment Specialist –Asia Pacific, Aberdeen Standard Investments, added: “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, and this trend is particularly prevalent in Asia.”
The Luxembourg-domiciled Fund has been registered for sale to professional and retail investors in Singapore, Hong Kong, Luxembourg, Switzerland and the United Kingdom.
Alvena So, Head of Media Relations – Asia Pacific
+852 2103 4793
Notes to editors
- Aberdeen Standard Investments is a global asset manager dedicated to creating long-term value for our clients. With over 1,000 investment professionals, we manage £455.6 billion/$562.9 billion* of assets worldwide. We have clients in c.80 countries supported by over 40 offices globally. This ensures we are close to our clients and the markets in which we invest. (*as of 30 June 2020)
- We are high-conviction, long-term investors who believe teamwork and collaboration are the key to delivering repeatable, superior investment performance.
- Standard Life Aberdeen plc is headquartered in Scotland. It has around 1.2 million shareholders and is listed on the London Stock Exchange.
- You can access the Aberdeen Standard Investments media centre here: https://www.aberdeenstandard.com/news-and-media
This document is strictly for informational purposes only and does not constitute an offer to sell, or solicitation of an offer to purchase any security, nor does it constitute investment advice, investment recommendation or an endorsement with respect to any investment products. Investors should not make an investment into the investment product based solely on this document and should read the relevant offering documents for more details to ensure that they fully understand the associated risks before investing. Investors are responsible for their investment decisions and should ensure that the intermediary has advised on the investment product’s suitability. If in doubt, please seek independent financial and professional advice.
Investment involves risk. The value of investments and the income from them can go down as well as up and investors may get back less than the amount invested. Past performance is not a guide to future performance. Investment returns are denominated in the base currency of the fund. US / HK dollar based investors are therefore exposed to fluctuations in the US dollar / HK dollar / base currency exchange rate. No liability whatsoever is accepted for any loss arising from any person acting on any information contained in this document.
Any data contained herein which is attributed to a third party ("Third Party Data") is the property of (a) third party supplier(s) (the “Owner”) and is licensed for use by Standard Life Aberdeen**. Third Party Data may not be copied or distributed. Third Party Data is provided “as is” and is not warranted to be accurate, complete or timely. To the extent permitted by applicable law, none of the Owner, Standard Life Aberdeen** or any other third party (including any third party involved in providing and/or compiling Third Party Data) shall have any liability for Third Party Data or for any use made of Third Party Data. Neither the Owner nor any other third party sponsors, endorses or promotes the fund or product to which Third Party Data relates.
Bloomberg data are for illustrative purposes only. No assumptions regarding future performance should be made.
**Standard Life Aberdeen means the relevant member of Standard Life Aberdeen group, being Standard Life Aberdeen plc together with its subsidiaries, subsidiary undertakings and associated companies (whether direct or indirect) from time to time.
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1The Fund is actively managed. It aims to outperform the MSCI AC World (Net) Index (USD) with a dividend yield greater than that of the benchmark before charges.
2 Dividend rate is not guaranteed. Dividend may be paid out of capital. Please refer to Important information 7 and 8 above.
3 Environmental, Social and Governance factors
4 Source: Bloomberg, as of 2 September 2020