Aberdeen Life Multi-Asset (inc Property) Fund
Formerly Aberdeen Life Mixed Fund
Objective
To maximise the value of pension savings, achieving long-term returns that are ahead of inflation.
Manager's Quarterly Report
July 2010
Market review
- Global equity markets have performed poorly, with a broad global index down over 11%. All
regions performed broadly in line, with Japan, Asia Pacific and Emerging markets marginally
ahead of the other regions. In general, government bonds have performed well with the 10
year Treasury yield falling by almost one percentage point, finishing the quarter below a
psychologically important 3% level. In contrast, peripheral European bonds, led by Greece, have
been under pressure because of fears over sovereign defaults, with spreads over German bunds
rising to record highs.
Fund review
- Following a tactical shift last quarter, we further de-risked the fund towards a neutral position
on equities through raising cash from the sale of the Global ex UK Equity Fund. The resulting
asset allocation is still a marginal overweight to non-UK equities, particularly the Asia Pacific
region, at the expense of the UK.
Within fixed income, we switched our tactical global bond exposure exposure back to UK
bonds on currency concerns.