Posted inHead To Head

HEAD-TO-HEAD: Abrdn versus Alquity

FSA compares two global sustainable equity products: the Aberdeen Global Sustainable and Responsible Investment Equity Fund and the Alquity Global Impact Fund.
by Rupert Walker

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Source: FE Fundinfo. Returns in US dollars.

Performance

The Abrdn fund has generated a three-year cumulative return of 60.26%, compared with 68.82% by its reference benchmark, the MSCI ACWI, and 57.44% by the average international equity fund available to Hong Kong retail investors, according to FE Fundinfo.

During the same period, had annualised volatility of 16.67%, which was lower than both the index (19.74%) and the sector average (18.38%), FE Fundinfo shows.

However, “the strategy’s objective was transformed in October to a sustainable and responsible investment mandate in October, so the fund’s long-term performance figures are not really relevant,” said Liu.

The Alquity strategy has delivered a 12.28% return since its inception on 29 January 2021, which is less than the Abrdn fund’s return of 19.61% since that date, according to FE Fundinfo.

“It’s too early to judge the performance of either strategy yet,” said Liu. “But, the concentrated nature of the Abrdn portfolio might mean that it will lag if stocks which had underperformed and been excluded due to low ESG scores recover,” she warned.

Meanwhile, by limiting its tracking error versus the MSCI World index to 4% to 6%, “the Alquity fund might be capping its future upside performance,” said Liu.

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