Aberdeen Asset Management has unveiled a strategic bond fund for head of global credit and global high yield Oliver Boulind’s global credit team.
The Aberdeen Strategic Bond fund is structured as a UK-domiciled open-ended investment company and has a minimum investment of £500, with a 0.5 per cent annual management charge.
The fund uses the asset manager’s bottom-up investment approach to identify opportunities across the spectrum of global investment and sub-investment grade debt and debt-related securities.
The fund is able to adjust its asset allocation across both corporate and government bonds to suit changing economic environment and market conditions. Aberdeen says it has been launched in response to investor demand for positive real returns in the ongoing environment of low growth.
Boulind says a strategic approach to bond management has a number of benefits for investors, including the ability to enter a variety of markets and the flexibility to increase or reduce exposure to asset classes.
He says: “After a 30-year bull run in bonds many investors are quite rightly questioning their fixed income exposure. Whilst low yields in many markets do not match the weak fundamentals, opportunities do remain for investors that have a dynamic and global remit.”
Charles Stanley head of investment research Ben Yearsley says: “Strategic bonds provide the best opportunity to ride out whatever happens to bonds over the next few years when interest rates eventually rise.
“The downside of a strategic bond fund is that you don’t quite know the level of income you are going to get and it can fluctuate quite a bit as the fund switches between investment grade high yield and government bonds.”