Aberdeen Standard has opened up an existing small-cap strategy to a wider audience to capitalise on its strong, long-term performance, Citywire Selector can reveal.
The fund is officially called the Aberdeen Standard Global Smaller Companies SICAV and is a mirror of the existing Global Smaller Companies OEIC strategy, which was launched in 2012.
This new vehicle will provide European and Asian investors access to a portfolio of 50-60 stocks, as well as diversification for those invested in large-cap global equities only.
Lead manager on the strategy is Citywire A-rated Alan Rowsell, who took charge of the original fund in December 2016. He will be supported by seven-strong small cap team managed by small-cap veteran Harry Nimmo.
Commenting on the launch, Rowsell said his team has managed to identify niche opportunities over the six years of its OEIC version and it will seek to further this in the new approach.
He gave examples such as Hong Kong-listed sportswear manufacturer Shenzhou International and US dental aligner company Align Technology as hidden gems which have prospered.
Rowsell added, despite high valuations posing some risk, the stock market is in an uptrend looking into 2018.
‘Investing globally opens up a vast opportunity set of around 6000 companies across 46 countries, including emerging markets.’
The Standard Life Inv Global Smaller Companies fund returned 50.6% in US dollar terms over the three years to the end of December 2017. This compares to a 39.7% rise by its Citywire-assigned benchmark, the MSCI World Small Cap TR USD, over the same timeframe.