Aberdeen Closed-End Funds
FOR US INVESTORS ONLY
Important Information:
Closed-end funds are traded on the secondary market through one of the stock exchanges. The Fund’s investment return and principal value will fluctuate so that an investor’s shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV) of the fund’s portfolio. There is no assurance that the Fund will achieve its investment objective. Past performance does not guarantee future results.International investing entails special risk considerations, including currency fluctuations, lower liquidity, economic and political risks, and differences in accounting methods; these risks are generally heightened for emerging market investments.Concentrating investments in the specific regions subjects the Fund to more volatility and greater risk of loss than geographically diverse funds.Fixed income securities are subject to certain risks including, but not limited to: interest rate (changes in interest rates may cause a decline in the market value of an investment), credit (changes in the financial condition of the issuer, borrower, counterparty, or underlying collateral), prepayment (debt issuers may repay or refinance their loans or obligations earlier than anticipated), and extension (principal repayments may not occur as quickly as anticipated, causing the expected maturity of a security to increase).The Fund’s use of leverage exposes the Fund to additional risks, including the risk that the costs of leverage could exceed the income earned by the Fund on the proceeds of such leverage. Additionally, in the event of a general market decline in the value of the Fund’s assets, the effect of that decline will be magnified in the Fund because of the additional assets purchased with the proceeds of the leverage.Your portfolio may not have the same asset class weightings. Asset class weightings are subject to change.Diversification does not ensure a profit or protect against a loss in a declining market.Some of the information in this document may contain projections or other forward looking statements regarding future events or future financial performance of countries, markets or companies. These statements are only predictions and actual events or results may differ materially. The reader must make his/her own assessment of the relevance, accuracy and adequacy of the information contained in this document, and make such independent investigations, as he/she may consider necessary or appropriate for the purpose of such assessment.Any opinion or estimate contained in this recording is made on a general basis and is not to be relied on by the reader as advice. Neither ABRDNnor any of its agents have given any consideration to nor have they made any investigation of the investment objectives, financial situation or particular need of the reader, any specific person or for any loss arising whether directly or indirectly as a result of the reader, any person or group of persons acting on any information, opinion or estimate contained in this document.
Aberdeen Closed-End Funds
AOD and AGD Fund Update - May 2025
In this episode, we sit down with Josh Duitz, Aberdeen's Head of Global Income and a Portfolio Manager for both AOG and AGD. Josh breaks down the differences of the two funds and provides insight into the investment strategy.
Mike Taggart: Welcome to the latest podcast for both the Aberdeen Total Dynamic Dividend Fund, ticker symbol AOG, and the Aberdeen Global Dynamic Dividend Fund, ticker symbol AGD. I'm Mike Taggart, Aberdeen's Head of Closed-end Fund Investor Relations. With me is Josh Duitz, Aberdeen's Head of Global Income and a Portfolio Manager for both AOG and AGD. Josh, thanks for taking the time to discuss the funds today.
Josh Duitz: Thanks for having me, Mike. Appreciate it.
Mike Taggart: So both of these funds invest in global equities with the objective of seeking high current dividend income. Why should investors consider investing in global dividend stocks?
Josh Duitz: Sure, investors should consider global dividend stocks today because they offer a powerful combination of income, resilience and diversification. In a world where interest rates may stay high for longer, dependable dividend income provides a cushion against volatility while also contributing meaningfully to total return.
Importantly, looking globally allows investors to access a broader opportunity set, including high quality companies in Europe, Asia and emerging markets that often pay attractive and sustainable dividends, sometimes in sectors a region underrepresented in domestic portfolios. At a time of economic and geopolitical uncertainty, dividend paying companies, typically with strong balance sheets and disciplined capital allocation, offer a compelling way to invest defensive while still participated in equity markets upside.
AOD and AGD are unique in that although both funds pay sizable dividends, we do not look at only for the highest yield in stocks, which can be a pitfall. Many times of a stock is a very high yield it can be because the company has gone ex-growth zero or investors think they'll be cutting the dividend in the near future. We're looking for companies both in the value and growth sectors and across different sectors and regions globally. We're trying to find companies that offer the best total returns.
Mike Taggart: And that objective of seeking high current dividend income, it impinges a bit on your ability to invest in technology companies, correct?
Josh Duitz: That's actually incorrect. We actually do invest in technology companies globally. So being that we have something called dividend capture, it allows us to invest in some companies with a lower than average dividend yield than to the sector and we make that up to dividend capture. And that's what we really like about AOD and AGD, it offers investors a balanced portfolio across sectors and across regions and technology. Certainly, we'd be remiss if we ignored that sector.
Mike Taggart: We touched on the investment process a little, but you're investing in firms all around the world. So what is the investment process? And with you being based in the US, how do you source investment ideas from around the globe?
Josh Duitz: That's a great question. One of the key advantage we have at Aberdeen is that we're truly global investment platform. While I'm based in the US, as you said, we have portfolio managers and analysts located across all the major regions, including Europe, Asia and emerging markets. This gives us direct access to local insights and on the ground perspectives that are hard to replicate. Our investment process is highly collaborative. We meet regularly with the developed market equities team, and we're in constant contact with the global colleagues, sharing investment ideas, discussing portfolio changes and debate and valuations on fundamentals.
These interactions happen through weekly calls, emails, informal conversations, regional updates. It's a constant two-way flow of information that really enhances our ability to find the best opportunities, no matter where we are in the world. Just last week, I was on a call with the company, with our emerging market colleagues, and we all share the information prior to the call and discussed with the company the possible investment thesis there.
Mike Taggart: So two part question here to keep things fair and balanced. First, where have you been facing the strongest headwinds? And second, where are you finding the most attractive opportunities? Is there a certain sector or a certain geography that looks compelling?
Josh Duitz: One of the biggest headwinds we've seen recently has been the growing risk of a slowdown and even a recession since Liberation Day. Market sentiment shifted somewhat, and the reintroduction of tariffs in the US only adds to inflationary pressure, raising costs and increasing uncertainty for companies across a number of sectors. We're very mindful of these macroeconomic risks and how they might impact earnings and cash flows, especially for economically sensitive businesses. That's why we focus on companies with strong balance sheets and a proven ability to sustain and ideally grow the dividends through the cycle. These are the kind of companies that we believe can better weather inflation, policy shifts, or even a downturn.
Now to the second part of your question of where we're seeing the best opportunities. We're constantly looking across all sectors and geographies. Our process is bottom up and fundamental driven. We aim to be as macro neutral as possible. The macro environment changes very quickly, and we've seen repeatedly over the past few years, so we don't even try to predict it. We've just seen that over the past month. Instead, we focus really on identifying high quality companies with durable cash flows and attractive valuations wherever they may be.
That said, we've seen some interesting opportunities lately in areas like European industrials, global healthcare and certain emerging market consumer names. But again, we're not looking to make a big macro bet. We're focused on building a resilient, diversified portfolio from the bottom up.
Mike Taggart: Excellent. And then finally, to summarize what are the three points that investors should take away from everything you've just said about AOD and AGD?
Josh Duitz: First of all, dividend strategies have historically proven to be resilient during periods of economic uncertainty and market volatility. They offer both downside protection and a consistent income stream, which becomes even more valuable when growth is slowing or inflation is rising.
In addition, historically, companies that pay dividends and grow those dividends outperformed companies that do not pay dividends or cut their dividends.
Secondly, having a global portfolio allows you access to a wider range of high quality, dividend paying companies, some of which may not be available in a purely domestic strategy. It gives you better diversification across sectors, currencies and policy environments.
And third, our approach is focus on quality, discipline and long term value. We're not chasing yield. We're investing in companies that can sustain and grow their dividends over time. Supported by strong fundamentals and sound capital allocation.
Mike Taggart: Well thank you, Josh for that in-depth update.
Josh Duitz: Thank you for having me Mike. Really appreciate it.
Mike Taggart: There are three convenient ways to learn more about AOG and AGD.
First, visit our website Aberdeen investments.com. Second, you can email us at Investor Relations at Aberdeen plc.com, or give us a call at 1-800-522-5465. I'm Mike Taggart of Aberdeen. Thank you for listening.
This podcast is provided for general information only and assumes a certain level of knowledge of financial markets. It is provided for informational purposes only and should not be considered as an offer, investment, recommendation or solicitation to deal in any of the investments or products mentioned herein and does not constitute investment research. The views in this podcast are those of the contributors at the time of publication, and do not necessarily reflect those of Aberdeen.
The companies discussed in this podcast have been selected for illustrative purposes only, or to demonstrate our investment management style, and not as an investment, recommendation or indication of their future performance. The value of investments in the income from them can go down as well as up, and investors make it back less than the amount invested. Past performance is not a guide to future returns, return projections or estimates, and provide no guarantee of future results.