- Aberdeen Asset Management
- Canada Institutional
- Strategy In Focus: World Growth and Income
“In today’s economy, with interest rates at very low levels and savings income plummeting, many investors need to look beyond cash deposits to generate the income they require. We believe there are opportunities to earn an attractive income from equity investment in global equity markets.
– Bruce Stout, Senior Investment Manager, Global Equities
World Growth and Income
In today’s environment of low interest rates, investors are increasingly looking for alternative sources of income as their savings are not growing at the bank. More and more investors are turning to global equity markets to get this income.
However, if you thought global investing was only about generating capital growth – think again. Aberdeen’s World Growth and Income strategy is a globally invested equity portfolio that aims to provide good growth in capital and deliver a high and growing income.
Around the world, companies are embracing the idea of shareholder value. The Canadian market has traditionally been associated with paying high dividends but we believe it is increasingly companies in Asia, Europe and Emerging Markets that are using their earnings to return value to investors.
If you’re looking for income from investments, it’s time to search a little further afield.
The advantages of going global include:
- More and more companies outside of Canada are embracing the idea of shareholder value and are returning a good level of income to investors, particularly in Asia, Europe and Emerging Markets
- There is a greater number of companies to choose from when investing globally and it offers the ability to compare companies and select what we believe are the best ones from around the world
- A global portfolio can potentially improve portfolio diversification
Why the Aberdeen World Growth and Income?
- We don’t chase yield – instead we look for quality companies that are focused on growing their dividends
- Capital growth and income – the companies we invest in can potentially provide income as well as the prospect to grow capital
- Clear and consistent approach – a robust investment process in which quality is key. We believe our process is disciplined, replicable and consistent
- High quality, face-to-face research – we meet every company before we invest
- Buy and hold – we disregard short-term market noise and hold our investments for the long term
- We are not driven by benchmarks – to us, risk is investing in poorly managed companies that do not deliver. If we don’t like a company, we don’t invest in it
- Global resources – we have regional investment teams around the globe. As such these teams are ideally placed to research companies first-hand from which the best ideas are selected for our global portfolios
- Experience in global equity income – we have successfully managed global equity income mandates for several years