Account number:
Dear Unitholder
Changes to the Aberdeen Multi-Asset Income Fund(ARSN 088 906 585)from 1 August 2016
We would like to advise that we are making some changes to the Aberdeen Multi-Asset Income Fund(‘the Fund’).
Thechanges are summarisedin this letter. Please review the letterand keep itfor future reference.
The changes will be incorporated in the forthcoming PDS for the Fund dated 1 August 2016. We encourage you to read the PDS, which can be viewed or downloaded from our website, from 1 August 2016.Alternatively, you can request that the PDS be sent to you.
You are not required to take any action as a result of receiving this letter. However, it is important that you understand what the changes mean and how they will affect your investment in the Fund.
This letter should not be taken as advice and does not take into account your personal financial situation, objectives or needs. Before making a decision about whether or not to remain invested, we strongly recommend that you seek advice from a financial adviser.
What is changing?
The following changes will apply from 1 August 2016:
- Up to 15% of the Fund can be invested in international equities.
- Up to 5% of the Fund can be invested in alternatives.
- The maximum exposure to growth assets increases to 65% (from 50%) to capture the addition of international equity and alternative investments.
- Currency hedging of the Fund’s non-Australian dollar denominated assets is now between 0-100%.
Why is the Fund changing?
Todate the Fund’sinvestment in equities has been limited to Australian equities. While the Fund will continue to invest the majority of its equity exposure in Australian equities, we believe it is prudent to allow a moderate investment in income-producing international equities and, to a lesser extent, alternatives. This will add to the Fund’s diversification, as it will broaden the sources of income received into the Fund.
The introduction of additional asset classes, an increase in the allocation to growth assets, and broadening of the currency hedging strategywill provide the Fundwith additional flexibilityto meet its income and capital growth objectives.Importantly, these changes do notimpact the overall risk profile of the Fund.
As is currently the case, there is no guarantee that the investment objective of the Fund will be achieved or that capital will be maintained over the short or long term.
What are the risks associated with the changes?
All investments carry risk. Different strategies carry different levels of risk depending on the assets that make up the strategy. These could include the loss of invested capital, delays in repayment and the non-payment of distributions.
There are a number of significant risks that investors must understand. Please refer to the PDS for more information regarding the significant risks of the Fund.
What are the benefits associated with the changes?
- Greater diversification via the introduction of new asset classes
- A broader range of asset classes contributing to the income you receive from the Fund
- Greater flexibility in allowing the investment team to continue to meet the Fund’s objectives
Will the Strategic Asset Allocation weights change?
Yes. As is the case every year around this time, from 1 August 2016 the Strategic Asset Allocation weights for the Fund will be:
Strategic AssetAllocation (SAA)
Asset / SAA weight / Asset allocation ranges
Australian equities / 30% / 0-50%
International equities / 5% / 0-15%
Property securities / 10% / 0-50%
Fixed income / 20% / 0-50%
Sub-investment grade credit / 15% / 0-25%
Alternatives / 0% / 0-5%
Cash and short maturity income / 20% / 5-70%
From 1 August 2016, theMulti-Asset team will begin moving the Fund to the new strategic weights.
Exposure to these asset classes may be gained directly or indirectly through domestic and offshore funds,
including funds managed by Aberdeen.
For the latest available strategic weights and current asset allocation of the Fund, please visit our website at
Do the changes affect the Risk Levelfor the Fund?
The Risk Level, as represented by the Standard Risk Measure[1](SRM) for the Fund, does not change as a result of these changes.
Can unitholders withdraw from the Fund?
Unitholders can withdraw from the Fund at any time in accordance with the withdrawal instructions detailed in the current PDS for the Fund.Normal transaction costs (i.e. a sell spread of 0.20%)will be payable by the unitholder.
What are the tax consequences of withdrawing from the Fund?
Awithdrawal of units from the Fund (whether or not you decide to reinvest in another fund)is a tax event. The withdrawal proceeds may encompass a return of your capital, as well as a component of income and capital gains (similar to a distribution) which may be taxable.
We recommend that you speak with your financial adviser or tax adviser, as this letter has not taken into account your personal financial situation, objectives or needs. A tax statement detailing the income and capital split will be sent to you following the final payment for inclusion in your tax return.
Pre-announced yield for Financial Year 2016-17
The yield for the Aberdeen Multi-Asset Income Fund for this financial year will be announced in late July and will be available on our website. For more details on this, please refer to the Fund’s annual update, also available on our website.
Further information
For further information, or if you would like more information about our other funds, please contact your financial adviser or the Aberdeen Client Service team on 1800 636 888 (Australian investors toll free) or +61 2 9950 2853 (if calling from outside Australia). Alternatively you may wish to email us at
Yours sincerely
Amanda Young
Head of Client Services – Australia
Aberdeen Asset Management
[1] The Risk Level represents the Standard Risk Measure (SRM) for the Fund. The SRM is generally reviewed each year based on the latest estimates of long-term volatility and correlation data. Any significant changes to market conditions or refinements to the SRM methodology may alter the SRM from time to time. Please visit our website at for more information on SRMs.