4 Feb 2011
Aberdeen Asset Management has announced the launch of the Aberdeen Emerging Markets Bond Fund and the Aberdeen High Yield Bond Fund. Launching in March, the two Funds will be part of the Group's UK OEIC range and each has been seeded with £10 million.
The Aberdeen Emerging Markets Bond Fund will be based on the existing Luxembourg-domiciled, S&P Arated Aberdeen Global – Emerging Markets Bond Fund and will be managed by the Group’s emerging market debt team based in London. The 10-strong team, led by Brett Diment, manages over $5 billion in assets. The fund will have a blended portfolio of hard and local currency, with sovereign and corporate debt and an initial target yield of between 6 to 6.5%. Income will be distributed monthly.
The Aberdeen High Yield Bond Fund will be based on the existing Luxembourg-domiciled, OBSR AA-rated Aberdeen Global – High Yield Bond Fund and will be managed by the group’s high yield bond team based in London. The six-strong team, led by Paul Reed, will aim to provide an attractive level of monthly income with the opportunity for some long-term capital return. The initial target yield will be between 8 and 8.5%.
The Aberdeen Emerging Markets Bond Fund will be based on the existing Luxembourg-domiciled, S&P Arated Aberdeen Global – Emerging Markets Bond Fund and will be managed by the Group’s emerging market debt team based in London. The 10-strong team, led by Brett Diment, manages over $5 billion in assets. The fund will have a blended portfolio of hard and local currency, with sovereign and corporate debt and an initial target yield of between 6 to 6.5%. Income will be distributed monthly.
Brett Diment, Head of Emerging Markets Debt at Aberdeen, commented: “Emerging economies and companies are generally in robust financial health. Given their strong fundamentals and relative appeal compared to G-7 fixed income securities, investors should consider diversifying their portfolios into emerging market debt. Whilst country and company-specific risks remain, an investment process, focused on on-the-ground research, will help investors identify both the risks and opportunities available.”
The Aberdeen High Yield Bond Fund will be based on the existing Luxembourg-domiciled, OBSR AA-rated Aberdeen Global – High Yield Bond Fund and will be managed by the group’s high yield bond team based in London. The six-strong team, led by Paul Reed, will aim to provide an attractive level of monthly income with the opportunity for some long-term capital return. The initial target yield will be between 8 and 8.5%.
Paul Reed, Head of European High Yield, commented: “With interest rates likely to remain relatively low, high yield bonds will remain attractive to investors searching for income. We anticipate another positive year for the sector in 2011 with high income supported by modest capital appreciation. Defaults should remain low supported by improving trend in company results, despite the weak macro-economic backdrop. With this in mind, we remain convinced that a bottom-up investment process, focused on rigorous, in-house research, will be key to driving total returns.”
