Aberdeen MM team rebrand multi-asset growth fund
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Aberdeen Asset Management’s multi-manager team is rebranding its £7.9m multi-asset growth fund and is giving it a stronger total return mandate.
The fund will be renamed diversified alpha and the team will be changing more than half of the 26 underlying funds.
Aberdeen is also reducing the annual management charge from 1.5 to 1.25 per cent and the total expense ratio from 2.37 to 2.12 per cent.
Holdings in the fund will be split across market neutral, equities long/short, fixed income, global macro and a small pot for tactical trading.
Market neutral and equity long/short funds can both amount to 20 per cent of the portfolio each, while fixed income and global macro funds can represent 25 per cent of the portfolio each.
The tactical trading bet is for funds the team deem to be sensible high conviction bets and can amount to around 10 per cent of the fund.
The changes will become effective from May 1.
Aberdeen has chosen to keep the fund in the balanced managed sector pending the Investment Management Association’s review of its sectors.
Chelsea Financial Services managing director Darius McDermott says: “Blending absolute return type offerings is something I expect we will see more of in the multi-manager space. My only concern with these types of funds is the chance of rising total expense ratios.”
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