UK fund manager Aberdeen Investments has launched an emerging market equity strategy for Australian investors.
The abrdn Emerging Markets Equity Fund will focus on cash generative companies with strong earnings growth, with a portfolio of around 80–100 emerging market equities.
The fund was previously known as the abrdn Sustainable Emerging Opportunities Fund, but Aberdeen said it has broadened its market exposure to provide investors with both income and long-term growth opportunities.
It noted emerging market companies, in particular, have the ability to grow, while paying attractive dividends.
This focus on both income and growth will be attractive to Australian investors seeking diversification, said Aberdeen’s exclusive Australian distributor SG Hiscock.
It aims to achieve a return (after fees) exceeding the MSCI Emerging Markets Index (AUD unhedged) over a rolling five-year period. It is managed by senior investment director Matt Williams and supported by the wider Aberdeen Investments global emerging market equity group.
Williams said: “Emerging markets have demonstrated strong performance in 2025, rebounding from previous years of underperformance. Valuations for EMs are still attractive, the US dollar is peaking and CAPEX spending is increasing, which are all positive factors for further outperformance by this asset class.
“The goal of our strategy is to deliver a premium and growing income stream for investors across the investment cycle, while observing Aberdeen’s well regarded ESG principles. In delivering our targeted outcome, we aim to capitalise on two specific inefficiencies in emerging markets, which are the compounding effects of dividends and undervalued company fundamentals.”
SG Hiscock & Company is the exclusive distributor of the abrdn Emerging Markets Equity Fund in the Australian market.
The two firms established a strategic partnership back in 2023, which saw SG Hiscock set up a dedicated team to distribute the firm’s international funds to an Australian audience. The local capabilities of abrdn’s Australian equity investment management were also transferred to SG Hiscock.
SG Hiscock’s head of distribution, Anthony Cochran, said: “We believe this fund will complement many investors’ portfolios as they seek to diversify equity exposure across a range of asset classes.
“The fund’s strategy to invest in income generating equities, will also appeal to those investors seeking a regular income stream from their investments, however without compromising on potential capital growth.”
