Aberdeen’s MyFolio range increases allocations to infrastructure, real estate and short-dated bonds as portfolios adapt to changing market environment

• Structural drivers underpin demand in global infrastructure and real estate, as equity return assumptions move lower following strong run

• Allocations also increased to short dated bonds to reduce sensitivity to longer term interest rate moves

• Strategic Asset Allocation update aims to broadens diversification across risk-targeted multi-asset ranges

Aberdeen Investments has updated the Strategic Asset Allocation across its MyFolio risk-targeted multi-asset ranges, increasing exposure to infrastructure, global real estate investment trusts (REITs) and short-dated bonds, while modestly reducing allocations to traditional equities. 

MyFolio is Aberdeen’s cost-effective multi-asset solution, designed to support clients’ long-term investment goals through a range of risk-targeted portfolios.

The changes are designed to improve diversification, strengthen portfolio resilience and broaden the sources of long-term growth potential against a backdrop of strong equity market performance, changing interest rate expectations and ongoing macroeconomic uncertainty. 

The latest review covers the MyFolio Index, Enhanced ESG Index, Core, Multi-Manager and Enhanced ESG ranges. After making no changes to the Strategic Asset Allocation last year, Aberdeen has introduced a series of incremental refinements aimed at maintaining each portfolio’s long-term risk profile while giving clients access to a wider set of return drivers.

Justin Jones, Head of Managed and Model Solutions at Aberdeen Investments, said: 

“The latest MyFolio Strategic Asset Allocation update is about maintaining long-term discipline while adapting to a changing market environment.

“Equity return assumptions have generally moved lower following strong market returns. At the same time, the expected return and risk-adjusted characteristics of some alternative growth assets have improved, particularly infrastructure and REITs.

“This means portfolios can continue to target long-term growth, but with a more diversified toolkit. The changes we’ve made aim to reduce reliance on traditional equities, while still maintaining growth potential through a broader mix of assets.”

Increased allocation to infrastructure and real estate

Aberdeen retains a positive view on both global infrastructure and real estate, underpinned by powerful structural drivers including digitalisation, decarbonisation and rising defence spending.

This is reflected in an increased allocation to both asset classes across the MyFolio range, with global infrastructure accessed through the abrdn Global Infrastructure Equity Fund and real estate accessed through Aberdeen's Global Real Estate Securities Sustainable Fund in conjunction with the abrdn Global REIT Tracker Fund.

The addition to both asset classes increases exposure to inflation protected earnings streams, which has certain attractions in a structurally higher inflationary environment. Aberdeen also notes that significant global investment needs are expected to create a sustained pipeline of opportunities, with private capital playing an increasingly important role. 

Reducing interest rate sensitivity with short dated bonds

Within fixed income, Aberdeen has increased allocations to short dated bonds across the MyFolio range. This reflects a desire to improve portfolio resilience and reduce sensitivity to longer-term interest-rate moves, while still maintaining appropriate defensive exposure.

Aberdeen’s investment process for MyFolio takes a granular approach to Strategic Asset Allocation, particularly within defensive fixed income, where the portfolios distinguish between nine asset classes across short-duration and all-maturity bonds, sterling corporate exposure and global credit.

Robert Bowie, Head of Portfolio Management at Aberdeen Investments, said: 

“One of the key differentiators of MyFolio is the approach we take to each asset class for strategic asset allocation. We are not simply allocating between equities and bonds. 

“We are looking carefully at the role each asset class plays, from short-dated fixed income through to infrastructure, listed real estate and other diversifying growth assets. These changes are incremental, but they strengthen the overall construction of the portfolios and support better diversification for clients.”

The updates to the Myfolio range have been implemented with a focus on keeping portfolio turnover controlled and maintaining robust liquidity under both normal and stressed market conditions. The update is intended to preserve the risk-targeted structure of MyFolio while ensuring the ranges remain aligned with long-term client outcomes. 

Ends

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Notes to editors

About Aberdeen Investments:

Aberdeen Investments is a specialist asset manager that focuses on areas where we have both strength and scale across public and private markets, including credit, specialist equities and real assets. 

Our teams collaborate across regions, asset classes and specialisms, connecting diverse perspectives and working with clients to identify investment opportunities that suit their needs.

As at 31 March 2026, Aberdeen Investments managed c.£385bn on behalf of clients, including insurance companies, sovereign wealth funds, independent wealth managers, pension funds, platforms, banks and family offices.

www.aberdeeninvestments.com

About Aberdeen Group

Aberdeen is a leading Wealth & Investments group, working to help millions of customers and clients turn their financial goals into reality. As at 31 March 2026, Aberdeen managed and administered c.£550bn of client and customer assets across its three core business, interactive investor, Adviser and Investments.

www.aberdeenplc.com 

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