Aberdeen Standard Global Smaller Companies Fund
Aberdeen Standard Investments has launched the Aberdeen Standard Global Smaller Companies Fund to Australian investors.
The fund invests in a portfolio of high-conviction, quality global smaller company stocks and seeks to outperform the MSCI All Country World Small Cap Index (USD) benchmark before charges.
“Australian investors tend to have a high exposure to larger companies in their offshore portfolios,” Brett Jollie, managing director of Aberdeen Standard Investments Australia, said.
“By adding exposure to smaller companies investors can introduce additional long-term capital growth opportunities while diversifying investment risk.”
The UK version of the fund has achieved an annualised return of 14 per cent (net of fees) over the five years to 31 May 2020.
Alan Rowsell, UK-based manager of the fund, said the fund's investment approach is driven by a focus on high quality companies with strong balance sheets and resilient earnings profiles.
“Importantly, we place environment, social and governance (ESG) considerations and active stewardship at the heart of our investment approach," he said.
"Understanding ESG risks and opportunities in small caps alongside other financial metrics allows us to make more informed decisions and generate better risk-adjusted returns for our clients."