Aberdeen Asset Management has launched a new diversified fixed income fund which invests in a range of strategies managed by the group’s global investment teams.
The Aberdeen Core Plus Fund has been designed to present investors with a more diversified, higher alpha alternative to traditional Australian fixed income funds, which Aberdeen believes is particularly attractive in the current market.
The core of the fund is Australian bonds, which is augmented by other credit exposures including global investment grade credit and sub investment grade sectors, such as high yield and emerging market debt.
The new fund, created in January, responds to the needs of Australian investors for a wider fixed interest universe by providing a more diversified, capital and risk efficient investment option, Aberdeen Asset Management chief executive and head of Australian fixed income Bill Bovingdon said
Aberdeen believes the fund has high income and low growth potential, as well as low volatility.
The fund will aim to outperform the UBS Composite Bond Index by 1.50 per cent per annum, according to Bovingdon, .
“We see this as a cross-the-cycle product that is able to adapt to wherever the investment opportunities come up,” he said.
The fund is likely to appeal to several sections of the investor market, Bovington predicted.
“In the institutional space, we think it will be a good improvement to the existing portfolios of a number of our clients and prospective clients, where at present they are pretty much invested in only Australian bond portfolios,” he said.
Research house van Eyk recently awarded the fund an A rating and Aberdeen is looking to have it included on the major retail platforms.
