Aberdeen is to rename an £800m fund to highlight its benchmark-tracking remit, the latest sign that asset managers are becoming more careful in how they describe products.
The fund house said the UK Enhanced Equity fund will be renamed as Aberdeen UK Equity Index Managed in September. According to the company, this will “highlight that the investments in the fund will closely match those in the fund’s performance measurement index (the FTSE 100) by adding ‘index’ to the name”.
The Aberdeen fund invests in equities and futures to replicate the performance of the FTSE 100.
However, the firm’s quantitative investment team also tries to generate extra returns by selling index options.
The name change also differentiates it from Aberdeen’s UK Equity Enhanced Index fund.
The decision comes at a time of increased scrutiny on whether asset managers are providing clarity, as well as value for money, to investors.
UK Enhanced Equity’s low ongoing charges figure of 0.32 per cent mean it does not qualify as a ‘closet tracker’ – a fund that charges active fees while doing little more than tracking an index.
But the FCA estimates there is around £109bn in funds branded as ‘active’ that closely mirror the market.
Data from FE Analytics shows the Aberdeen fund has underperformed the FTSE 100 over one year, but outperformed on a three and five-year basis.
