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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Conclusion

Morningstar has awarded the Abrdn fund three stars based on historical returns, and a forward-looking analyst rating of neutral.

FE Fundinfo, which bases its assessment on a fund’s three-year history of delivering alpha, minimising relative volatility and producing consistent returns, awards it two crowns.

The Alquity product’s short life means that has yet to be assigned a rating by either agencies.

“Bothe funds’ strategies make sense,” said Liu, “but time will tell whether or not they actually work”.

The Alquity fund was incepted at the end of January 2021 and the Abrdn strategy was changed to an sustainable and responsible investing approach as recently as October.

“ESG is a hot topic, and some fund managers use it as a marketing gimmick,” Liu warned. “It is also worth remembering that despite their high profile, ESG products only make up 9% of global funds and comprise just 3% of US funds.”

However, on balance, Liu prefers the Abrdn product.

“The details of its strategy is clearer and we’re more comfortable with what the managers are trying to do,” she said.

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