Aberdeen Standard is to combine its long-running European equity income strategy with an overlay provided by JP Morgan fund subsidiary Mansart to create a defensive version of the fund.
The Defensive European Equity Income fund has been seeded with €100 million (£86 million). It will be available for a minimum investment of €1 million, for an ongoing institutional charge of 0.95%.
The portfolio will combine equity selection provided by Aberdeen Standard manager Will James, with an overlay provided by JP Morgan Mansart, an alternatives and index fund provider owned as a subsidiary of JP Morgan’s commercial bank.
James has managed the £775 million Standard Life European Equity Income fund since launch in April 2009. Over the past three years the fund has returned 25.1% versus a peer average of 27.1%.
He said: ‘This product offers investors the opportunity to invest with reduced equity market risk while at the same time benefiting from the continued success of a bottom-up fundamental research driven strategy.
‘Our successful partnership with JP Morgan has enabled us to create this ideal solution for investors seeking to access attractive risk-adjusted total returns, strong income delivery, capital efficient equity-like exposure and reduced portfolio volatility and drawdowns.’
The fund will be Ucits compliant and domiciled in Dublin.