Aberdeen Asset Management has introduced three Dublin-domiciled core-plus fixed-income funds that will seek higher returns than its existing core pooled range by investing in a broader investment universe.
The products are benchmarked against UK indices and will cater for UK pension schemes looking to break free from the traditional mandates made up of gilts and highly-rated bonds by moving into a number of uncorrelated assets. These include investment-grade credit, currency, emerging market debt and high-yield bonds.
The core-plus range will target returns of 1.25 to 1.5 per cent a year before fees compared with 0.75 per cent for Aberdeen’s core pooled funds.
The 83m core-plus sterling credit fund will be benchmarked against the Merrill Lynch sterling non-gilts index while the 185m core-plus index-linked bond fund will be benchmarked against the FTSE-A British Government index-linked over five years index.
The 163m core-plus sterling bond fund will be judged against the FTSE-A British Government All Stocks index.
All three funds have been seeded by existing clients and will be marketed to institutional investors.
Head of fixed income-EMEA Charles McKenzie says: “The launch of these three funds underlines Aberdeen’s long-term commitment to providing a wide range of fixed-income solutions to meet the varied needs of UK pension schemes.”