The Jersey-domiciled fund will initially target an annual dividend yield of 4.25%, paid quarterly, and will be jointly managed by the firm’s London-based emerging market equity and debt teams led by Kaloo and Diment respectively.
At the outset the portfolio will have approximately 60% of its assets invested in listed equities, with the balance invested in sovereign bonds.
The equities will be focused on growth-oriented stocks, while the bonds are expected to provide much of the income.
Aberdeen says the blended portfolio approach will allow the asset allocation to be modified in response to changing economic circumstances.
Collins Stewart purchases private HNW manager ACL Kaloo, who is also head of global emerging markets at Aberdeen, said: “These uncertain times serve to highlight the need to avoid highly indebted entities, whether countries or companies, and focus instead on those with strong balance sheets, sound businesses and proven management.
“In this regard, the outlook for Latin America is compelling. The region’s improved economic fundamentals, vast natural resources, pool of consumers and financially strong companies means it should not be overlooked in a well-diversified global portfolio.”
Aberdeen said it is expecting to launch the fund in early July.
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