The Fund will apply dynamic asset allocation to a diversified portfolio of traditional and alternative assets, without reference to a benchmark.

Benefits of investing in the abrdn Multi-Asset Real Return Fund

Investing in the Fund offers a number of benefits, including:

• An objective-based strategy that aims to achieve a real return.

• Dynamic asset allocation that shifts the investment mix in order to negotiate the market cycle.

• Effective diversification through a combination of traditional and alternative assets.

• Controlled volatility through the use of dynamic asset allocation and effective diversification of assets.

• Access to a global Multi-Asset team with a robust and consistent long-term performance in multi-asset investing across traditional and alternative asset classes.
• Participation in any income distributions from the Fund.

Mainly direct and indirect investors seeking a dynamically managed multi-asset objective-based strategy, which aims to achieve a real return equivalent to 5% per annum above inflation (before fees) over a full market cycle (generally 3 to 5 years). You should consult a licensed financial adviser to obtain financial advice that is tailored to suit your personal circumstances.

About the Fund

The Fund will apply dynamic asset allocation to a diversified portfolio of traditional and alternative assets, without reference to a benchmark.

The Fund may shift its investments quickly and significantly, based on valuations and expected returns, and may completely divest from a particular asset class.

Fund volatility will be controlled through the use of dynamic asset allocation and effective diversification of assets.

Investment philosophy

The Multi-Asset team's rigorous process helps it to seek out strong, robust investments. Aberdeen Standard Investments' multi-asset funds are actively managed and invest across equities, bonds, property, cash, commodities and other alternative assets. This ability to switch between a broad range of asset classes provides greater diversification and the potential for a better risk/return profile than a pure equity-based portfolio.

The Multi-Asset team uses in-house and third party managers (where abrdn does not offer the required capability) when selecting investments to include in the multi-asset funds.

abrdn has a bottom-up stock selection process and meets with company management before making an investment in shares. This strong bottom-up investment approach complements our Multi-Asset team's asset allocation skills in order to generate attractive risk-adjusted returns.

abrdn's multi-asset investment philosophy is based on the following key beliefs:

1. Superior risk-adjusted returns can be achieved from multi-asset investing. Over the longer term, returns for all asset classes are driven by economic fundamentals and by identifying inefficiencies in valuations between markets. Value can be added through dynamic allocations to different assets and markets.
2. Focus on absolute return. The Multi-Asset team holds absolute returns to be more important over the longer term than those relative to a benchmark or index. The team's starting point therefore is to use the risk free rate to measure the relative attractiveness of different asset classes. The team is comfortable taking decisive positions away from a benchmark. This process is underpinned by the team's convictions from proprietary analysis and comparative research at a global level.
3. Look for appropriate balance between return, income and risk. The Multi-Asset team aims to deliver the appropriate balance between risk and return by diversifying across a wide range of traditional and alternative assets and by actively managing the asset allocation and underlying investments.

Asset Allocation

• Australian equities 0-50%*
• International equities 0-50%*
• Fixed income - investment grade 0-75%
• Sub investment grade credit 0-35%*
• Alternatives 0-35%*
• Cash and short maturity income 0-75%
  
  *Maximum combined allocation to these asset classes is 75%

How we invest your money

The Fund's investment strategy can invest in a broad range of asset classes including equities, bonds, property (listed and unlisted), hedge funds, private equity, infrastructure (listed and unlisted), commodities and currency across global emerging and developed markets.

The Fund may also invest in other investments including, but not limited to, securities, structured notes, money market instruments and cash and deposits. The Fund may invest in derivatives for hedging, risk management or for investment purposes.

Investments may be located in Australia or offshore, in Australian and foreign currency.

Exposure to these asset classes may be gained directly or indirectly through domestic and offshore funds, including funds managed by Aberdeen Standard Investments.

In aiming to meet the Fund's investment objective, the investment manager will apply dynamic asset allocation to a diversified portfolio of traditional and alternative assets, without reference to a benchmark.

The Fund may shift its investments quickly and significantly, based on valuations and expected returns, and may completely divest from a particular asset class.

Fund volatility will be controlled through the use of dynamic asset allocation and effective diversification of assets.

The strategy will produce investment returns dependent on the asset allocation and investment selection skills of the investment team. The success of the Fund's investment strategy will depend on a number of factors including market conditions and interest rates, and may be influenced by general and Fund specific risks.

Asset Allocation

• Australian equities 0-50%*
• International equities 0-50%*
• Fixed income 0-75%
• Sub investment grade credit 0-35%
• Alternatives 0-35%*
• Cash and short maturity income 0-75%

*Maximum combined allocation to these asset classes is 75%