Aberdeen Investments has announced a partnership with Prudential Hong Kong to make the abrdn SICAV I – Diversified Income fund available to investors under Prudential’s investment-linked assurance scheme in Hong Kong.

The fund’s multi-asset portfolio will be actively managed, combining equities, bonds and other listed alternative investments such as real estate investment trusts and listed infrastructure.

With a fixed monthly payout of 7% p.a., Aberdeen said the fund’s diversified portfolio approach “extends beyond traditional equities and bonds”, with volatility expected to be less than global equity markets.

“Concerns around geopolitical uncertainty, persistent inflation, and the concentration of market returns among a small group of US technology companies are prompting investors to seek greater diversification,” said Tina Tong, head of wholesale distribution – Greater China, Aberdeen Investments.

“At the same time, higher correlation between traditional equities and bonds has reduced the effectiveness of conventional multi-asset strategies in challenging market environments.”

Felix Fung, chief product officer, Prudential Hong Kong Limited, said: “Income-generating funds remain a popular choice among our New Capital Investment Entrant Scheme (CIES) clients.”

“Regular dividend distributions, typically paid monthly, allow investors to receive income while maintaining their investment required under the scheme.”

Aberdeen said Prudential is the first insurance company to offer the fund’s fixed monthly distribution share class in the investment-linked assurance scheme in Hong Kong.