Aberdeen Standard Multi-Asset Real Return Fund aims achieve a real return equivalent to 5% per annum above inflation (before fees) over a full market cycle (generally 3 to 5 years). The Fund will apply dynamic asset allocation to a diversified portfolio of traditional and alternative assets, without reference to a benchmark. The Fund may shift its investments quickly and significantly, based on valuations and expected returns, and may completely divest from a particular asset class.
In August, the Fund returned -0.61%in gross terms and -0.68% net of fees.
Risk assets including equities and the Australian dollar were the largest detractors over the month. China exposure, which had been reduced, sold off as concerns around the property sector grew with Chinese equities ending the month down -8%. Developed market equities were the most sizeable detractor as Australian equities sold off by -0.73% and global equities hedged to AUD sold off by -1.83%.
Fixed income exposures across government bonds, syndicated loans and floating rate notes were typically up over the month but could not compensate for the Fund’s negative return.
What is Aberdeen Standard Multi-Asset Real Return Fund Aberdeen Standard Multi-Asset Real Return Fund is an Managed Funds investment product that is benchmarked against Multi-Asset Growth Investor Index and sits inside the Multi-Asset - Real Return Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Aberdeen Standard Multi-Asset Real Return Fund has Assets Under Management of 89.08 M with a management fee of 0.84%, a performance fee of 0.00% and a buy/sell spread fee of 0.3%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Aberdeen Standard Multi-Asset Real Return Fund has returned 1.38% in the last month. The previous three years have returned 0.86% annualised and 7.26% each year since inception, which is when the Aberdeen Standard Multi-Asset Real Return Fund first started.
How is risk measured in this investment product?
There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Aberdeen Standard Multi-Asset Real Return Fund first started, the Sharpe ratio is NA with an annualised volatility of 7.26%. The maximum drawdown of the investment product in the last 12 months is -3.09% and -31.21% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product?
Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Aberdeen Standard Multi-Asset Real Return Fund has a 12-month excess return when compared to the Multi-Asset - Real Return Index of 3.64% and -0.03% since inception.
Does the investment product produce Alpha over its Peers?
Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Aberdeen Standard Multi-Asset Real Return Fund has produced Alpha over the Multi-Asset - Real Return Index of NA% in the last 12 months and NA% since inception.
What are similar investment products?
For a full list of investment products in the Multi-Asset - Real Return Index category, you can click here for the Peer Investment Report.
What level of diversification will Aberdeen Standard Multi-Asset Real Return Fund provide?
Aberdeen Standard Multi-Asset Real Return Fund has a correlation coefficient of 0.93 and a beta of 1.35 when compared to the Multi-Asset - Real Return Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers?
For a full quantitative report on Aberdeen Standard Multi-Asset Real Return Fund and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Aberdeen Standard Multi-Asset Real Return Fund with the Multi-Asset Growth Investor Index?
For a full quantitative report on Aberdeen Standard Multi-Asset Real Return Fund compared to the Multi-Asset Growth Investor Index, you can click here.
Can I sort and compare the Aberdeen Standard Multi-Asset Real Return Fund to do my own analysis?
To sort and compare the Aberdeen Standard Multi-Asset Real Return Fund financial metrics, please refer to the table above.
Has the Aberdeen Standard Multi-Asset Real Return Fund been independently verified by SMSF Mate?
This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
How can I invest in Aberdeen Standard Multi-Asset Real Return Fund?
If you or your self managed super fund would like to invest in the Aberdeen Standard Multi-Asset Real Return Fund please contact Level 10, 255 George Street, Sydney, NSW, 2000 via phone +61 02 9950 2888 or via email client.service.aust@aberdeenstandard.com.
How do I get in contact with the Aberdeen Standard Multi-Asset Real Return Fund?
If you would like to get in contact with the Aberdeen Standard Multi-Asset Real Return Fund manager, please call +61 02 9950 2888.
Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Aberdeen Standard Multi-Asset Real Return Fund. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - July 31, 2023 In July, the Fund returned 1.66% in gross terms and 1.58% net of fees.
Most asset classes posted positive returns with the bulk of the contribution coming from equities and alternatives exposures over the month. Our fixed income duration exposures, on the other hand, detracted slightly on the back of higher yields.
Performance Commentary - June 30, 2023 In June, the Fund returned -0.15% in gross terms and -0.22% net of fees.
The main detractor in the Fund was the allocation to alternatives. Higher government bond yields during the month resulted in modest declines across infrastructure companies. However, we continue to see compelling long-term return opportunities with infrastructure, reflecting stable income across different economic scenarios and positive inflation linkage. Our rates exposure also detracted as yields on Australian government and global government bonds rose. Elsewhere, our equity and credit exposures also contributed.
Performance Commentary - April 30, 2023 In April, the Fund returned 1.06% in gross terms and 0.99% net of fees. The portfolio still maintains an overall defensive stance in its positioning, slightly underweight across all asset classes in favour of cash. Across equities, we still maintain a preference for defensive styles and Asia Pacific equities which, while positive over the month, lagged the broader market. The AUD also continued its decline, limiting the overall level of upside captured from equity allocations although equities were still positive contributors. Our fixed income exposure contributed positively across the board. The Syndicated Loan Fund returned 1.43% for the month, while the Australian corporate bond and floating rate note exposures returned in the region of 0.5% each. The Subordinated Debt and Frontier Market Bond funds lagged but still posted positive returns over the month.
Performance Commentary - February 28, 2023 In February, the Fund returned -2.28% in gross terms and -2.34% net of fees. The portfolio still maintains an overall defensive stance in its positioning, slightly underweight across all asset classes in favour of cash, while risk assets are tilted toward more defensive styles, particularly across equities. Despite this positioning, the equity exposures could not avoid the general downturn seen across markets in February. Asian exposures underperformed developed markets over the month, giving back some of the strong gains in January. In fixed income, the syndicated loan strategy, floating-rate notes and subordinated debt posted positive returns, while the government bond exposures sold off as yields moved higher.
Performance Commentary - January 31, 2023 In January, the Fund returned 2.25% in gross terms and +2.17% net of fees. The portfolio still maintains an overall defensive stance in its positioning. It also remains slightly underweight across all asset classes in favour of cash while risk assets are tilted toward more defensive styles particularly across equities. In fixed income, the syndicated loan strategy and the recently added exposure to floating-rate notes and subordinated debt enjoyed rallies throughout the month, posting positive returns as more traditional government bonds sold off.
Performance Commentary - December 31, 2022 In December, the Fund returned -0.68% in gross terms and -0.75% net of fees. The portfolio maintains a defensive stance given the numerous headwinds we believe remain ahead, which includes a US recession. Therefore, the portfolio is slightly underweight across all asset classes in favour of cash.
Our more cautious approach to the impending risks that we see also means that as we go into the new year, the portfolio remains tilted towards more defensive styles of equities, which softened the drawdown through December as markets sold off across the board. In fixed income, the syndicated loan strategy and the recently added exposure to floating-rate notes and subordinated debt enjoyed rallies through the month to post positive returns as more traditional government bonds sold off.
Performance Commentary - October 31, 2022 In October, the fund was up by 0.75% in gross terms, and by 0.65% net of fees. The portfolio’s exposure to equities contributed positively with equities being up almost across the board with the exception of EM and China. Fixed income which is mainly orientated towards the domestic market also contributed positively over the month. The listed alternatives, having been a detractor last month, rebounded to post positive returns this month. In particular, social housing/property exposures rebounded strongly as well as the exposure to litigation financing contributed to returns. On portfolio activity, there were no significant changes to portfolio allocations over the month. We maintained reduced allocations to equities, fixed income and alternatives in favor or cash. We continue to have around 30% in cash in the portfolio given the fundamental risks that still exist and the more attractive yields that cash provides as the RBA continues to increase the cash rate. With such a large cash exposure in the portfolio, we are ready to deploy back to risk assets when sentiment improves, and opportunities arise.
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