Abundance Global Dynamic Dividend Fund Q1 2025 Commentary: Outperformed Benchmark Due to Stock Selection.

The abrdn Global Dynamic Dividend Fund outperformed its benchmark over Q1 2025 due to strong stock selection and sector allocation. The fund's performance was driven by a combination of its active management approach and the rebound of dividend-paying stocks in the market. The fund's cumulative and annualized total return outpaced its benchmark over the three-month period.

The Abrdn Global Dynamic Dividend Fund delivered strong performance during the first quarter of 2025, outpacing its benchmark by leveraging effective stock selection and sector allocation. This robust performance can be attributed to the fund's active management approach, which capitalized on the rebound of dividend-paying stocks in the market.

The fund's cumulative and annualized total return as of April 30, 2025, stood at 7.58% compared to the MSCI AC World Index's 8.63%. Over the same period, the fund's annualized total return for the last 10 years was 11.12%, 13.37% for the last 5 years, and 6.90% for the last 3 years. The fund's one-year return was 9.60%, with a year-to-date return of 1.62% [1].

Key contributors to the fund's performance included BAE Systems, Engie, and ING Groep. BAE Systems, a UK-based defense company, benefited from increased defense spending by EU countries. Engie, a diversified European utility company, saw its stock rise after guiding to better-than-expected medium-term profitability targets. ING Groep, a Dutch bank, participated in a broad-based rise in bank shares due to improved macroeconomic outlook [1].

Conversely, shares of Target and Broadcom faced setbacks. Target's stock sold off amid declining consumer sentiment and fears of high reciprocal tariffs on Chinese imports. Broadcom, a key supplier of graphics processing units for generative AI, saw its stock decline due to concerns about future demand for AI chips [1].

Market conditions during Q1 2025 were volatile, with global equity markets ending lower due to mounting concerns over the economic implications of US President Trump's tariff policies. These fears fueled concerns about a global trade war, leading to a sharp sell-off in April after the announcement of sweeping new US tariffs. However, markets recovered later in the month following a 90-day pause in the measures as part of broader trade negotiations [1].

The fund's focus on dividend-paying stocks and its ability to navigate market volatility were key factors in its outperformance. The fund's strategy of avoiding non-dividend-paying stocks like Amazon.com, Tesla, and Meta Platforms also contributed to its strong performance.

The fund's performance highlights the importance of active management and stock selection in achieving superior returns. As the economic outlook remains uncertain, investors should continue to monitor the fund's strategy and performance closely.

References:
[1] https://seekingalpha.com/article/4791173-abrdn-global-dynamic-dividend-fund-q1-2025-commentary