Mr Williams expects the strong growth characteristics of EM dividends to continue in the years ahead. Many EM companies now recognise the importance of dividends in attracting investors. As reported in the Bloomberg March 2025 report, since 2001, the number of dividend-paying companies in EM has grown significantly and is now on par with DM.

“Surprisingly, the proportion of EM companies paying dividends, as reported in the Bloomberg March 2025 report, is now similar to that in developed markets (DM) – around 85 per cent. Perhaps more significantly, Jefferies, 2023 actual, reported nearly 40 per cent of companies in EMs pay a dividend above 3 per cent, with yields of over 6 per cent per annum in the energy sector, and over 4 per cent within real estate. Investors can access attractive income opportunities through EM equities,” said Mr Williams, referring to the chart below from Bloomberg, June 2025.

Source: Bloomberg, June 2025 – Past performance does not predict future results.

Strong corporate fundamentals and good underlying economic growth mean dividends have also grown significantly faster in EMs versus DMs since the early 2000s, according to Mr Williams. The unprecedented pace of this growth is reflected in a compound annual growth rate (CAGR) of around 12 per cent over the last 20 years, as reported in the Bloomberg, March 2025 report. The attractive growth characteristics of EM dividends, stemming from both expanding cash flows and rising payouts, are a trend we expect to continue.

Mr Williams believes “the income component of equity investing is critical, as income represents the lifeblood of total returns over time. It not only comes in the form of dividend distributions, but also through the cash flows that companies generate and reinvest to grow tomorrow’s income.”

“The importance of dividends to long term performance can’t be understated. Jefferies, 2023 actual, reported that since December 2000 dividend returns in EM have been among the highest relative to other regions, with half of investor returns coming directly from the compounding effect of dividend payments. In addition, the price return component, which represents the other half of investor returns, is primarily driven by cash flow growth, which in turn fuels dividend growth.” Mr Williams said.

Looking ahead, he believes EMs are set to benefit from a new global investment cycle, linked to key trends such as digitalisation, decarbonisation and defence.

“Historically, EM performance has been tied to the global investment cycle, and we believe we are embarking on a new one. We expect good growth in several sectors, including technology. Technology hardware companies, such as semiconductor producers, for example, represent the new building blocks of the digital economy and the boom in artificial intelligence (AI).

“We are also witnessing substantial demand for data centres that will power our digital economies. This demand has triggered the need for infrastructure investment in antiquated electricity networks. And elsewhere, the shipping industry is also going through a replacement cycle, based on a need for more eco-friendly technologies and greater defence spending.

Emerging markets are in prime position to benefit from these developments as technology owners and low-cost green metal resource providers.

“We believe EMs are evolving into a compelling destination for income-focused investors, offering a rare combination of sustainable high dividend yields and robust profitable growth potential. By leveraging the high and growing income in EMs, we believe that active investors may access attractive opportunities as part of a diversified portfolio capable of generating strong total returns,” said Mr Williams.

The post Emerging market equities offer investors a powerful combination of income and growth appeared first on AdviserVoice.

The abrdn Emerging Markets Equity Fund, previously known as abrdn Sustainable Emerging Opportunities Fund, will be managed by senior investment director, Matt Williams, and supported by the Aberdeen global emerging market equity group. The fund invests in a concentrated portfolio of around 80 to 100 emerging market listed equities. It aims to achieve a return (after fees) exceeding the MSCI Emerging Markets Index (AUD unhedged) over a rolling 5 year period.

The fund has broadened its market exposure, providing investors with income and long-term growth through investment in companies listed in, or significantly exposed to, emerging markets. Its holdings include Taiwan Semiconductor Manufacturing (TPE: 2330), Samsung Electronics (KRX: 005930), and Alibaba Group Holding (BCBA: BABA).

Mr Williams says the fund seeks to invest in the highest conviction and income ideas in the emerging market world.

“Emerging markets (EM) have demonstrated strong performance in 2025, rebounding from previous years of underperformance. Valuations for EMs are still attractive, the US dollar is peaking and CAPEX spending is increasing, which are all positive factors for further outperformance by this asset class.

“The goal of our strategy is to deliver a premium and growing income stream for investors across the investment cycle, while observing Aberdeen’s well regarded ESG principles. In delivering our targeted outcome, we aim to capitalise on two specific inefficiencies in emerging markets, which are the compounding effects of dividends and undervalued company fundamentals.

“We recognise that income plays a crucial role in generating significant portions of shareholder returns, yet remains an underappreciated aspect in emerging markets. EM companies, in many cases, have the distinct ability to grow while paying attractive dividends,” says Mr Williams.

ESG principles and stewardship remain upheld throughout the investment process, with ESG screening still applied to restrict investments in lagging ESG performers and companies that violation the UN Global Compact.

SG Hiscock & Company is the exclusive distributor of the abrdn Emerging Markets Equity Fund in the Australian market.

SG Hiscock’s head of distribution, Anthony Cochran says an income focused fund that invests in the emerging world will appeal to Australian investors looking to diversify their equity allocation.

“Matt and the global emerging markets equity team have a solid track record at delivering great returns to investors.

“We believe this fund will complement many investors’ portfolios as they seek to diversify equity exposure across a range of asset classes.

“The fund’s strategy to invest in income generating equities, will also appeal to those investors seeking a regular income stream from their investments, however without compromising on potential capital growth,” says Mr Cochran.

The minimum initial investment in the fund is $20,000.

The post Aberdeen offers a contemporary emerging markets equity strategy to Australian investors appeared first on AdviserVoice.

While a return to the most extreme tariff levels appears unlikely, a complete rollback to pre-dispute norms is equally improbable. Countries with trade surpluses and globally integrated sectors, like industrials and semiconductors will be most exposed, while domestic or service-oriented sectors and trade deficit countries may be relatively insulated. Investors will face higher chances of dollar depreciation and continued global multipolarity, influencing currency and risk asset valuations. 

Markets will stay volatile, especially around major deadlines, though sharp retests of April lows are unlikely unless other shocks occur. Impacts will still vary by region and sector, and the market will continue to adjust to a new equilibrium as global power balances shift, and the US dollar faces more structural headwinds. 

US market recovery holds 

US equities have recovered strongly since April, bolstered by resilient earnings and improved valuations. However, the sustainability of this rally hinges on the evolving trade narrative and President Trump’s unpredictable negotiating style, leaving investors to focus on short-term tactical positioning around key policy dates. 

While mega cap tech stocks, the so-called “Magnificent 7”, remain market leaders, elevated valuations leave them vulnerable to shifts in interest rate policy or regulatory developments. At the same time, thematic exposure to artificial intelligence (AI) and digital infrastructure continues to attract capital, alongside small caps potentially benefiting from corporate tax cuts.  

Still, the broader picture for US assets is mixed. Valuations remain high relative to other regions, and the technical backdrop is increasingly supportive of international diversification. 

“Sell America” 

The first half of 2025 saw a notable weakening of the US dollar, driven by what many are calling a “Sell America” trend. Structural depreciation pressures are mounting, stemming from policy uncertainty, stronger nominal growth in Europe and Japan, and a quiet but deliberate US shift toward rebalancing trade flows by tolerating a weaker currency. 

Near-term support for the dollar may materialise if the Federal Reserve (Fed) pauses or US tax policy changes, but the longer-term trend suggests further weakness. The implications are twofold; if the decline reflects waning confidence in US governance, American assets may underperform while traditional safe havens like gold thrive. Conversely, if the move is driven by slower growth or monetary easing, global risk assets may find fresh support. 

We expect the Fed to cut rates twice in the second half, 25 basis points each, likely starting in Q4. While inflation remains sticky and fiscal policy remains loose, the central bank has room to manoeuvre thanks to solid underlying activity and improved financial conditions. 

Yet the Fed is not in a rush. Upside inflation surprises or stronger-than-expected stimulus could quickly reduce the scope for further easing. 

Beyond the US 

Given the complex mix of macro and policy risks, portfolio resilience will hinge on country and asset diversification.  

The case for international allocation is bolstered by fading US exceptionalism. As capital rotates into undervalued and reform-oriented markets, investors willing to venture beyond the US may find more balanced risk-reward profiles. European and Chinese valuations are currently more attractive, than in the US. With increased fiscal and defence spending in Europe and policy easing in China, there is potential for continued capital flows into these regions in the second half of the year.  

We are also seeing compelling opportunities across global government bonds, high-quality credit, infrastructure, private credit, and real estate. 

Gold will also remain a strong haven, especially if market weakness is driven by declining confidence in US policy. However, other diversifying assets, like renewable infrastructure, social housing, and mining royalties, also offer uncorrelated income and can help protect portfolios during market selloffs. 

The outlook 

The second half of 2025 promises no shortage of headlines, but for investors, the greater challenge lies in discerning signal from noise. Trade tensions will come and go, but the larger story is one of global transition. As the world moves toward multipolarity, and policy unpredictability becomes the norm, flexibility and strategic diversification will be essential. 

Investors should be prepared not just for more volatility, but for more opportunity. 

By Dongyue Zhang, head of investment specialists APAC, multi-asset investment solutions  

The post Navigating a fractured global market: life after the 90-day suspension  appeared first on AdviserVoice.

Irene Goh, deputy global head of multi-asset at fund manager abrdn, says that in an environment where traditional cash deposits may no longer suffice, a diversified approach to income generation is essential for investors, especially those seeking income to support their retirement.

“Equities can be a valuable source of income. Australian equities, in particular, offer an attractive yield spread compared to global equities, enhanced by the franking credit system of taxation. Additionally, global high dividend equities and fixed income assets can contribute to income solutions too.

According to Ms Goh, investors should be seeking stable and consistent income through diversified income sources across global equity, global bond and listed alternatives.

“Listed alternatives are important as they can provide access to differentiated income streams with lower dependency on economic trends. These may include infrastructure, specialist property, precious metals, royalties, renewable energy, and special opportunities.

“We maintain a flexible asset allocation to stay nimble on equities, and we remain positive on duration assets such as bonds, and we also believe that investors should diversify risk through listed alternatives such as listed infrastructure companies as the returns from cash investments fall as central banks cut interest rates,” she said.

Ms Goh’s base case is for a soft landing in 2025, characterised by moderating economic growth and inflation slowly returning to targets in developed countries, thus allowing central banks to lower interest rates even further this year.

“We expect the US Federal Reserve will cut rates two more times in 2025, beginning in September. Further cuts from the European Central Bank and the Bank of England are also likely later this year as economic growth slows.

“We have identified income opportunities which are less sensitive to economic cycles such as renewable energy and infrastructure assets which can deliver income and is often linked to inflation, and less susceptible to any downturn in the economic cycle,” she said.

Ms Goh says that combining diversified asset allocation with proprietary stress tests is the key to generating sustainable income while minimising downside exposure.

“By strategically allocating to alternative asset classes and employing active management techniques, retirees can aim to achieve a consistent and reliable income stream in a low-rate environment. It is essential for retirees to consider a diversified approach that goes beyond traditional cash deposits to secure their income needs in the current economic climate, especially with cash rates falling in Australia and elsewhere,” she said.

At its February meeting, the Reserve Bank of Australia (RBA) lowered the cash rate target to 4.10 per cent from 4.35 per cent. With interest rates on online savings accounts now typically yielding less than 2 per cent, this exposes many savers to very low returns.

“Compared to inflation at around 2.5 per cent in January 2024, returns on bank online savings accounts are substantially lower, and averaged just 1.75 per cent in January 2025, down from over 2 per cent a year ago. Bank one-year term deposits rates averaged a little more at 3.35 per cent per annum, well below around 4 per cent a year earlier, so the real return on cash deposits is negligible.

“In an environment, where inflation could reignite given Trump’s tariffs, and interest rates could fall further on savings accounts in 2025, investors should be cautious about investing too much in cash and instead diversify their exposures into other assets such as equities, bonds and alternatives which can deliver reliable income,” said Ms Goh.

The post Alternative asset classes offer consistent, reliable income for retirees as rates fall appeared first on AdviserVoice.

“Investors have been quite surprised with the resilience of the US economy holding up fairly well through the last few quarters, in spite of rapidly rising interest rates in the US and previously some stresses and pressure on commodity prices leading to high input prices.

“We’re starting to see some signs of cracks showing. But the gradual pace of economic activity decline means we’re looking at a mild recession in the US to evolve sometime in the middle of next year. And out in Europe and UK, one could reasonably argue these economies are already moving into recessionary conditions.

“In Australia similarly, we’re looking at inflation declining slower than expected and very much held up by still healthy demand for services. But growth is also moving along the same trajectory of seeing some slowdown, and housing markets stresses are starting to show up. Consumer spending is also softening out.

“What that all means in terms of policy rates is one should expect central banks around the world to keep policy on hold for a little while more, so higher for longer, and potentially for the Fed to start cutting rates around the middle of next year when a recession hard-landing sets in, and the second half of next year could see policy rates inching lower. That’s our central scenario and base case.

“At an asset class level, underweighting equities and being a bit more conservative on our equity holdings, will put us in good position to weather some of the upcoming potential pressure going into 2024. We have been slowly increasing our duration across most of our portfolios, although at a much more measured pace, in view of some of the technical developments and fiscal debt pressure that’s happening in the US bond and treasury markets.

“So, what we advocate in our portfolios and with investors is to increase the allocation to quality investments as well as to diversifying assets.

“In 2024 most developed market economies, including Australia, will start edging towards policy easing, as economic activity starts tapering off and declining. It’ll come through by way of a multi-speed scenarios. Europe and the UK will potentially lead the pack in rate cuts and rate easing to engineer a stimulus to support this recessionary hard-landing scenario, which should come through in the second quarter of next year.”

By Irene Goh, head of multi-asset investment solutions APAC & strategy

The post Indicators pointing to a global recession in 2024 appeared first on AdviserVoice.

Global asset manager abrdn says key recommendations in the Quality of Advice Review (QAR) could rapidly accelerate the delivery of digital advice by super funds and assets managers like itself and significantly improve access to cost-effective advice for Australians.

abrdn executive adviser Jason Nyilas said the proposed shift from a prescriptive ‘best interest’ duty to a principles-based ‘good advice’ duty for advisers would remove significant roadblocks to providers who were waiting in the wings to provide Australians with digitally delivered advice and investment solutions.

abrdn believes the future of digital advice is bionic advice which combines the power of an artificial intelligence-driven digital advice process with human adviser interaction.  However, efforts to develop a bionic investment advice service in partnership with HUB24 have been delayed because of concern advisers that use the service may not satisfy the ‘best interest’ duty to clients.

Mr Nyilas said if the QAR recommendation for a replacement ‘good advice’ duty was introduced obstacles to introducing wide-ranging bionic advice solutions that abrdn has successfully operated in the UK for several years could be more easily replicated and implemented into the Australian market. Existing hurdles would be largely removed through QAR’s  reforms to reduce regulatory complexity.

In addition, Australian superannuation funds, which have a responsibility to formulate retirement income strategies for members under the recently introduced Retirement Income Covenant, would be able to more easily harness bionic and other digital advice strategies to satisfy this requirement at a lower cost to members.

“If the proposed QAR recommendations are introduced it will streamline and accelerate the introduction of digital advice in Australia and play a major role in reducing the advice gap and lead to better informed financial decisions for many more Australians,” Mr Nyilas said.                                      

The post QAR recommendations would rapidly accelerate delivery of digital financial advice in Australia says abrdn appeared first on AdviserVoice.

Brett Jollie

Global asset manager abrdn has launched the first of what will be a series of sustainable actively managed exchange traded funds (ETFs) on the Australian Securities Exchange as part of a broader business strategy to increase investor access to its investment solutions across asset classes, regions and markets globally.

The abrdn Sustainable Asian Opportunities Active ETF fund (ASX: ASAO) is designed to provide investors with high capital growth over the medium to long term by seeking exposure to Asian markets excluding Japan.

The fund invests primarily in a portfolio of around 35-70 Asian (excl. Japan) quality listed companies which have the potential for capital growth and increased earning potential. abrdn searches out investment targets using a team of 40-strong equity professionals based at seven equity desks across Asia Pacific.

Brett Jollie, Managing Director – Australia, said the launch of the sustainable active ETF series was a core part of abrdn’s product and distribution strategy in the region. The choice of the abrdn Sustainable Asian Opportunities Active ETF fund as ‘the first cab off the rank’ was a reflection of abrdn’s 30 years of experience in managing Asia Pacific equities, the centrality of ESG to its investment approaches, as well as the opportunities abrdn currently sees for investors in Asia.

“We have been long time leaders in Asian and emerging markets investing and this heritage and level of commitment allows us to see opportunities where others can’t. Our research teams have identified several structural themes which we believe will support growth in Asian markets in years to come and the new Active ETF will give access to these. In the meantime, Asia offers attractive valuations with companies trading well below their five-year averages, with the risks of higher inflation and slower growth already priced in.

“Asia represents the most economically dynamic collection of markets anywhere in the world and is well positioned to benefit from the huge investment needed to decarbonise the world, with substantial opportunities in renewables and energy storage production capacity,” Mr Jollie said.

The abrdn Sustainable Asian Opportunities Active ETF investment team combines its own ESG expertise with strong top-down support from abrdn’s Sustainability Group of more than 30 ESG specialists. Our investment team employs a number of sustainable investing approaches, including assigning every company an ESG Quality rating to identify sustainable leaders or improvers, utilising a separate ESG House Score to complement our bottom-up research, and targeting a carbon footprint that is at least 20% lower than the benchmark.

The post abrdn launches the first of several sustainable active ETFs on the Australian Securities Exchange appeared first on AdviserVoice.

Raf Choudhury

Global asset manager abrdn has announced it has hired an Investment Director to further strengthen its Australian Multi-Asset Investment Solutions (MAIS) offering for wholesale and institutional investors, financial advice groups and investment platforms.

abrdn has appointed Raf Choudhury to the newly created position where he will play a leading role in managing abrdn’s Australian multi asset funds (including the Multi-Asset Real Return Fund and Multi-Asset Income Fund) and its rapidly growing managed accounts capability. Raf will report to Irene Goh, Head of Multi-Asset Investment Solutions – Asia Pacific, and will be an important member of abrdn’s Asia-Pacific and Global MAIS teams.

Choudhury joins abrdn from State Street Global Advisors where he held a range of portfolio manager roles over a 17-year period in both the UK and Australia, and most recently was State Street’s Head of Investment Strategy & Research – Australia.

Irene Goh, Head of Multi-Asset Investment Solutions – Asia Pacific, abrdn, said: “We are extremely pleased to have Raf onboard to further our successes in Asia Pacific. This signifies our commitment to the business and clients in Australia with Raf driving the growth of abrdn’s multi asset investment capability locally. He will assume the portfolio lead for the Australian-based portfolios and managed accounts.

“The breadth of abrdn’s investment platform across public, alternative and private markets, coupled with digital, sustainability and investment solutions capabilities anchors our ability to provide customised cross-asset solutions to meet clients’ complex needs today. Raf will be instrumental in bringing these to the doorstep of our Australian clients and the investing community. We look forward to partnering with our clients in addressing their challenges.

“A key element of Raf’s responsibilities will also be contributing investment insights to the broader MAIS teams that should translate into successful portfolio strategies. With his experience, we look to Raf delivering valuable and sophisticated analytical research as well as investment strategies to the regional and global investment network. ”

Brett Jollie, Managing Director – Australia, abrdn, added: “This new role is a great example of abrdn investing in the Australian business. We have listened to our clients and acted to meet their needs.

“While Raf will be the Multi Asset business’ point person here in Australia, he will be backed by our large global team of more than 100 MAIS professionals who manage more than AU$83billion (US$61billion) in multi-asset investment strategies.

“Raf will also play an integral role in the development and further growth of our managed account capability. abrdn Australia currently has a suite of over 20 separately managed account solutions for financial advice licensees and advisers to tap into, and is a core growth pillar for the Australian business.”

The post abrdn strengthens Australian Multi-Asset Investment Solutions offering with Investment Director appointment appeared first on AdviserVoice.

The newly formed Sustainability Group will provide subject matter expertise to abrdn’s investment processes and support its sustainable investing value chain through generating insights; setting frameworks and standards; ensuring active ownership; and supporting product design and commerciality and client reporting and outcomes.

Previously Global Head of Responsible Investment, Amanda’s new role will see her sit on abrdn’s Investment Vector Executive for investments to ensure that sustainability remains core to its work, meeting clients’ needs and regulatory requirements. She will report to abrdn’s CEOs for investments, Chris Demetriou (UK, EMEA & Americas) and Rene Buehlmann (APAC).

To support her role, Amanda has made a number of key leadership appointments to the Sustainability Group, effective from 1st April:

Danielle Welsh-Rose, Head of Sustainability APAC and Head of Sustainability Specialists

In addition to taking on the newly created role of Head of Sustainability APAC, Danielle will lead the group responsible for ensuring that abrdn’s client proposition continues to evolve to meet current and future demand. She will also lead the development of abrdn’s sustainability training academy “Grow Sustainably”. Danielle sits on the Executive Leadership Team in APAC and is Head of Sustainability Institute – APAC*. Her previous role was ESG Investment Director (APAC).

Mike Everett, Head of Active Ownership

Mike will continue to lead abrdn’s Active Ownership team who work with teams across the investment vector to ensure that active ownership, including engagement and voting activities, remain at the heart of its investment process. His previous role was Head of Stewardship.

Eva Cairns, Head of Sustainability Insights and Climate Strategy

Eva’s team will lead the sustainability research, climate strategy and thought leadership for investments, through strong partnerships across abrdn. They will ensure that its research is core to sustainability standards, innovation and the client proposition. The team will continue to work with the abrdn Research Institute and across the research functions within each of the investment teams to ensure they capitalise on abrdn’s research capabilities. Eva’s previous role was Head of Climate Change Strategy.

Dan Grandage, Head of Sustainable Investing

Dan will lead efforts in building abrdn’s common approach to sustainable investing across abrdn. This will include setting the sustainability standards and building investment frameworks for the house and abrdn’s sustainability funds, with ESG integration remaining a core part of the investment process within asset classes. Dan’s previous role was Head of ESG, Real Assets in which he will still retain involvement and oversight of.

Amanda Young, chief sustainability officer, abrdn, said: “As client expectations continue to focus increasingly on material ESG matters, we must continue to evolve as an active asset manager to provide solutions which meet these expectations. As part of our on-going commitment to achieve this, and to invest sustainably, we have created the Sustainability Group which is a central component to our investment process.

“The Sustainability Group will continue to coordinate and set the abrdn house view and standards on sustainability matters including climate change, corporate governance, voting and active ownership to support the investment teams in delivering a coherent ESG integration and engagement strategy. More broadly, our strong leadership team will help drive abrdn’s Sustainable Investment approach forward, working to influence external bodies on governance, sustainability, engagement and regulatory matters.”

Brett Jollie, Managing Director, abrdn Australia, said: “At abrdn we integrate ESG considerations into every stage of our investment process, working closely with our companies, clients and regulators to help shape the world around us.

Client demand for Sustainable Investment products is evolving rapidly and The Sustainability Group will help ensure abrdn builds on its position as an ESG pioneer and market leader for the benefit of all our stakeholders.”

The post abrdn strengthens sustainability offering with new ‘Sustainability Group’ appeared first on AdviserVoice.

Brett Jollie

At COP26, global asset manager abrdn has announced its target to reduce the carbon intensity of its assets by 50% by 2030 vs a 2019 baseline^[1].

abrdn has developed a climate change strategy focused on Net Zero Directed Investing (NZDI). This means moving towards the goal of net zero in the real world – not just in its portfolios. abrdn will seek to achieve this goal through a set of actions, including rigorous research into net-zero trajectories, developing net-zero-directed investment solutions and active ownership to influence corporates and policy makers.

The goal will be delivered via three pillars of action:

1. Decarbonisation: abrdn is committed to tracking and reducing the carbon intensity of its portfolios. That means continuing to incorporate carbon analysis into the investment process and supporting credible transition leaders and climate solutions. Our equities, credit and quants investments already have the majority of assets with a carbon intensity below benchmark and our Real Estate business has committed to aligning their assets to net zero 2050 pathways.
2. Providing net zero solutions: abrdn is committed to increasing the proportion of assets flowing into net zero directed investing solutions. Around 30% of AUM is currently managed in line with net zero 2050. abrdn will aim to increase this by continuing to develop net zero solutions across all asset classes, actively engaging with clients as well as transitioning its fund range to support net zero goals.
3. Active ownership: abrdn is committed to voting and engaging with its investee companies to drive change and transition real assets. The team will engage with the highest financed emitters across equity and credit holdings seeking transparency on progress against clear transition milestones assessed against relevant standards – such as the Climate Action 100+ net zero benchmark. abrdn will divest from companies where, after two years, it considers insufficient progress has been made against the transition milestones set, unless it’s not in line with the client mandate.

abrdn recognises that sustainable change starts with its own operations. That’s why it is also announcing its own ambitious target of net zero in operations by 2040.

Stephen Bird, CEO of abrdn said: “At abrdn we are acutely aware of our obligation to support the drive towards net zero. That’s why I’m pleased we can announce these climate commitments today – both for the investments we manage and our own operations – which build on those we made earlier in the year.”

“But we must be very clear: simply moving our clients’ money out of high-carbon intensity stocks into greener options will not solve the world’s crisis. Decarbonising a portfolio is not the same as decarbonising an industry. To achieve that we need effective engagement with companies, because more seismic change will come from backing credible transition firms on their path from high to low carbon intensity.”

“And asset managers cannot operate in a vacuum. Bolder, collective action by governments is desperately needed. Effective incentives in the form of appropriate carbon pricing are absolutely critical to enable capital allocation in line with net zero and to create an investment environment which rewards companies and investors that go green. We also need a proper debate  and action on the role of the tax system in the transition. Pricing carbon needs to be focused on changing behaviours, and ensuring a just transition, on a national and global scale.”

Brett Jollie, Managing Director of abrdn Australia added: “At abrdn we believe asset managers must take a forward-looking view to support the net zero transition by providing capital to companies that have ambitious and credible decarbonisation strategies. Active ownership is a powerful tool to influence real world decarbonisation and provides a means to challenge companies on their transition strategies and influence corporate behaviour

“Stronger global climate policy is fundamental to enabling capital allocation in line with net zero 2050 and we urge governments to step up ambition and action,” Mr Jollie said.

This new pledge builds on the commitments abrdn announced earlier this year.

abrdn also believes in collective change which is why it joined the Net Zero Asset Managers (NZAM) initiative which this week also published the first Net Zero Asset Managers initiative Progress Report.

The post abrdn sets target to reduce the carbon intensity of assets it manages by 50% by 2030 appeared first on AdviserVoice.