Aberdeen Asset Management has launched a sterling short-dated corporate bond fund to meet the needs of investors looking for a conservative means of allocating to fixed income at a time when there are concerns about bonds.

The Aberdeen Sterling Short Dated Corproate Bond Fund has been launched and is looking to attract over £100 million in the first year. The Fund will invest in investment grade credit focusing on securities that mature within five years. It will be managed by the Group’s Pan-European fixed income team who also manage the £1.7 billion Aberdeen Corporate Bond Fund. The team has the ability to allocate up to half the portfolio to non-sterling assets that are then fully hedged back. They are supported by our global credit-research platform and will follow our tried and tested credit process which includes the elements of fundamental analysis, relative value and portfolio construction, bound together by risk management.

Roger Webb, Head of Pan-European Credit at Aberdeen, comments: “We are nearing the end of a 30 year bull market in bonds which raises inevitable questions about how this very important asset class within investors’ portfolios should be invested. In the near term we expect interest rates to stay low reflecting the low inflation and low growth environment we are in, supported by continuing Central Bank buying of fixed income securities. However, into the medium and long term as interest rates revert to a more normal long term level there is a risk of capital erosion that investors could face.”

“This Fund offers the opportunity to limit exposure to rising yields in fixed income securities whilst still remaining exposed to short dated corporate bonds to provide a reasonable level of income in the current environment.”

The Fund has a minimum investment of £500 and Ongoing Charges Figure (OCF) of 0.69%* on its A share class and a minmum investment of £500,000 and OCF of 0.39%* on its I share class.

*The Ongoing Charge Figure (OCF) is the overall cost shown as a percentage of the value of the assets of the Company. It is made up of the Annual Management Fee and other charges. It does not include any costs associated with buying shares in the Company or the cost of buying and selling stocks within the Company. The Ongoing Charges figure can help you compare the annual operating expenses of different Companies.

For further information contact

James Thorneley
james.thorneley@aberdeen-asset.com
Aberdeen Asset Management
Tel: 02074636323
Mob: 07768556334