The latest news in investment offerings, financial products and other services relevant to wealth advisors and their clients.

Aberdeen Investments, Prudential Hong Kong
Aberdeen Investments has partnered with Prudential Hong Kong by making the abrdn SICAV I – Diversified Income Fund, an investment choice available under Prudential’s investment-linked assurance scheme (ILAS) platform in Hong Kong. The fund offers an approach to generating income and achieving long-term capital growth through a diversified multi-asset portfolio that extends beyond traditional equities and bonds.

Prudential is also the first insurance company offering the fund’s Fixed Monthly Distribution share class in the ILAS platform exclusively in Hong Kong.

With a fixed monthly payout of 7 per cent annually, the fund aims to achieve a combination of income and growth by investing in an actively managed diversified portfolio covering a wide range of global asset classes, including equities, fixed income, and other listed investment opportunities. As a result of this diversification, and during extreme equity market falls, the fund’s losses are expected to be below those of conventional global equity markets, with a volatility typically less than two-thirds that of equities, the firm said in a statement.

“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,” Tina Tong, head of Wholesale Distribution – Greater China, Aberdeen Investments, said. “At the same time, higher correlation between traditional equities and bonds has reduced the effectiveness of conventional multi-asset strategies in challenging market environments.”

Listed assets, such as real estate investment trusts (REITs), have broadened access to a wider range of investments, including real estate, infrastructure, property and other special opportunities. These vehicles provide investors with exposure to alternative sources of return and income while retaining the liquidity and accessibility of listed securities. As a result, investors can build more diversified portfolios and reduce their reliance on traditional equity and bond markets, the firm continued.

"Income-generating funds remain a popular choice among our New Capital Investment Entrant Scheme (CIES) clients,” Felix Fung, chief product officer, Prudential Hong Kong Limited, added. “Regular dividend distributions, typically paid monthly, allow investors to receive income while maintaining their investment required under the scheme."