Aberdeen is hoping a new name and a stronger focus on total return will be a recipe for success for its £8m MM Multi Asset Growth fund which, as of next week, becomes the Aberdeen MM Diversified Alpha fund, a multi-asset portfolio of UCITS funds.
Over the past three years, the MM Multi Asset Growth fund has returned 20.86% versus 26.34% by the LCI Mixed Asset GBP index.
Aidan Kearney and Graham Duce will continue to manage the fund, which can now hold up to 100% in total return funds (previously, it had been able to invest 50% in directional-only funds and 50% in total-return vehicles).
In addition to the name change, the fund’s annual management charge has been trimmed from 1.5% to 1.25%.
Kearney chalks the changes up to the growth in absolute return funds (an estimated 71% of European hedge fund managers either manage or are planning to launch UCITS III funds) and the increased choice in the sector:
“The absolute return sector was not in existence when the fund launched three years ago, and there was a small library of funds available in this universe," he said. "But now there is a greater expanse of absolute return funds and a broadening out of the strategies available. With so many already on the market and yet more to follow, a multi-manager approach seems sensible for those intermediaries and investors without the time and skill set to filter down the universe."