ABERDEEN Standard Investments has handed the management of its underperforming Aberdeen Asian Smaller Companies Investment Trust to star manager Hugh Young as part of a number of changes instigated by the trust’s board.
As part of the changes the name of the £486 million vehicle has been changed to Aberdeen Standard Asia Focus, with Mr Young being tasked with reducing its number of investments from 80 to 60, half of which will be considered “core holdings”.
Mr Young, who has long been recognised for his expertise in emerging markets equities, said the restructure would allow his team to “both focus the existing portfolio and find the companies that will drive the growth for the future”.
“Small companies in Asia, with their greater exposure to domestic markets, provide investors with a comparatively safe harbour from the problems of trade disputes and currency fluctuations that currently dominates the news from the region,” he said.
Trust chairman Nigel Cayzer said the changes are being made in order to “streamline the investment approach” in light of markets “becoming larger and more complex”.
According to data held by the Association of Investment Companies, the trust has underperformed its peers in the Asia Pacific excluding Japan sector in recent years, despite outperforming on a longer 10-year view.
While the average trust in the sector made a net asset value total return of 44.8 per cent over three years and 51.2% over five, the Aberdeen Standard vehicle grew by 37.7% and 28.1% respectively. Over 10 years, the trust made a total return of 418.5% against a sector average of 302.5%.
Aberdeen Standard Investments has reduced its annual management charge from 1% to 0.96%, with the fee being charged on market capitalisation as opposed to net asset value from the start of this month.
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