Fund to watch: Aberdeen World Growth and Income

Published by David Prosser on 23 July 2013.
Last updated on 23 July 2013

Launched in 2009, this fund does not have a mandate to invest specifically in mega-cap stocks, but its investment objective, to provide income and capital growth from investment in companies worldwide, has led to a bias towards this sector of the market - 75% of its portfolio is currently held in mega stocks.

The largest holdings include the Swiss pharmaceuticals company Roche Holdings, US tobacco company Philip Morris International, the Taiwanese telecoms business Taiwan Mobile and Anglo-Dutch oil major Royal Dutch Shell. Investments in the UK, the US, Brazil and Switzerland account for around half the portfolio.

The fund’s performance over the past three years has been solid rather than spectacular, reflecting the performance generally of mega stocks, which have tended to lag smaller companies. But that should reverse if mega stocks perform as analysts such as Standish expect and the fund yields 3.8%, which will be appealing to income seekers.

Manager Stephen Docherty relies on a global network of Aberdeen Asset Managers offices to come up with good ideas for potential investments, though the fund has a relatively low turnover of holdings and aims to buy for the long term. Aberdeen is a "bottom-up" investor, looking for stocks it regards as attractive and keenly valued.

Around a quarter of its portfolio is held in the consumer staples sector, with telecoms and financial services also well-represented. Recent additions include global mining company BHP Billiton, US health business Baxter International and the British bank Standard Chartered.

Fund Details: Aberdeen World Growth & Income

Telephone: 0845 300 2890
Lead Manager: Stephen Docherty
Launch date: 9 October 2009
Total fund size: £265.17m
Initial charge: 4.25%
Annual management fee: 1.5%
Min intial investment: £50 per month or £500 lump sum
Min subsequent: £100
Performance Fee: N/A

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