Extending Aberdeen’s popular World, American and European Equity Enhanced Index OEIC funds
Photo credit: Aberdeen Investments
John McCareins, Chief Client Officer, Aberdeen Investment (left) - Nick Millington, Head of Systematic Index Solutions – Enhanced Index bei Aberdeen Investments (right)
Aberdeen Investments launched three new Article 8 funds, incorporating World, American and European Equity Enhanced Index funds within a Luxembourg domiciled SICAV vehicle.
These launches extend from Aberdeen’s popular World, American and European Equity Enhanced Index OEIC funds bringing the strategy, which combines the benefits of active and passive equity investing, to investors outside the UK.
Enhanced index portfolios blend active and passive approaches, aiming to modestly outperform benchmarks with diversified exposure to core equity markets, through a quantitative, data-led strategy.
"Demand for cost effective equity solutions isn’t going away - but it will evolve. Investors in the UK and overseas are increasingly looking for strategies that can capture more of the market’s upside while maintaining the transparency and efficiency they value in passive investing. Having run these systematic strategies in the UK for over ten years, it is the right time to take this heritage to a global market. Enhanced Index is one of our areas of focus in 2026, reflecting both the scale of the opportunity, and the long-term confidence our clients have placed in this approach."
John McCareins, Chief Client Officer, Aberdeen Investment
Aberdeen’s Quant team of over twenty investment professionals average almost two decades experience and currently manage £100bn assets under management (AUM) across the investments business as at 30 June 2025.
"Our systematic, rules-based Enhanced Index investment process targets consistent outcomes by focussing on drivers of return, while managing unintended risk and bias. A key differentiator in our strategy is the dynamic management of macro and thematic risks, such as AI and oil price shocks. Our proprietary platform allows us to identify and mitigate unintended exposures to these risks. This provides us the opportunity to add incremental returns without large deviations from the benchmark."
Nick Millington, Head of Systematic Index Solutions – Enhanced Index bei Aberdeen Investments
Enhanced Index blends active and passive in one allocation
The funds focus on an active return with low tracking error. Within those parameters, Aberdeen targets companies with strong Value, Quality, and Momentum characteristics. That is, well-run companies that are not overpriced, and are supported by the market with a rising share price.
"Each style - enhanced index, passive, and active - has its place depending on investor needs. Sometimes all three are included in a portfolio. Enhanced index allows investors to blend active and passive in one allocation."
Nick Millington, Head of Systematic Index Solutions – Enhanced Index bei Aberdeen Investments
The Funds will be available for distribution in Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Italy, Luxemburg, Netherlands, Norway, Portugal, Singapore, Spain, Sweden, Switzerland and the UK. They will have an ongoing fund charge (OCF) of 0.25% (World, European), and 0.2% (US) for investors outside the UK.
Sustainable Investing Approach and SFDR Article 8
"Every equity investment is guided by our Sustainable Investing approach. Through this approach, the Funds commit to investing a minimum of 10% in Sustainable Investments, while seeking to achieve a higher ESG score and a lower carbon intensity than their benchmarks—aiming to deliver both financial potential and meaningful ESG outcomes. The Funds also avoid companies involved in areas such as UN Global Compact breaches, controversial weapons, tobacco, and thermal coal, ensuring alignment with widely recognised sustainability standards."
Nick Millington, Head of Systematic Index Solutions – Enhanced Index bei Aberdeen Investments
The Funds fall under Article 8 of the Sustainable Finance Disclosure Regulation (SFDR) and therefore promote Environmental and Social characteristics, as well as investments that follow good governance practices.
The Funds uphold high environmental and social standards, integrating ESG considerations at the core of their investment process. While they do not pursue a dedicated sustainable investment objective, they are designed to help investors benefit from companies that are better positioned for a more responsible future.
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