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Aberdeen sees £8bn summer loss; Unveils global gov't & frontier bond funds
by Dylan Lobo on Sep 23, 2013 at 08:17
'Portfolios overly exposed to domestic fixed income securities and/or weighted towards the most indebted nations of the world may suffer concentration risk. Diversification of investment opportunities based on economic fundamentals will be key to negotiating bond markets in the coming years.'
Meanwhile the Aberdeen Global - Frontier Markets Bond fund will invest in a range of frontier market bonds, primarily located in sub-Saharan Africa, central America and Asia.
Aberdeen says these are smaller markets but offer investors higher income. The fund –which has received internal seeding of $10 million – will be managed by Aberdeen’s emerging markets debt team, led by Brett Diment.
Diment said: 'With an investment universe of over 40 countries and growing, we believe frontier markets will continue to offer attractive return prospects given their favourable growth outlook, manageable fiscal and debt positions, and higher yield opportunities compared to mainstream emerging and developed markets.'
Profit on track
Despite the tough summer, Aberdeen expects full-year pre-tax profit to be at the upper end of market forecasts, while its conviction in emerging markets has not been swayed by the summer turmoil.
‘We have a fundamental approach to investment, one we believe our clients appreciate. While emerging markets have seen some cyclical adjustments in recent months, their structural growth potential remains unchallenged. The long-term attractions of the companies and countries in which we invest are compelling,’ Aberdeen chief executive Martin Gilbert (pictured) told the stockmarket.
‘We are also mindful that while there are signs of recovery in Europe and the US, the situation is fragile and structural problems have not been resolved.
‘Aberdeen and our funds are well placed to navigate the difficult market environment ahead to deliver strong returns to our clients and investors.’
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