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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
Aberdeen Asset Management suffered a sharp fall in assets under management over the summer with outflows of £1.2 billion net outflow, but it is hoping to help stem the tide with the launch of two bond funds.
According to a pre-close trading update, assets under management fell from £209.6 billion on 30 June to £201.7 billion on 31 August.
Emerging markets bore the brunt of the withdrawals as fears over the impact the possible end of quantitative easing would have on the region hit sentiment. The outflow of £0.6 billion was also partly due to the firm’s decision to control capacity in its GEM product range.
Global equity funds experienced an outflow of £0.5 billion, which the group attributed to the withdrawal of assets by a single investor.
On the flip side, flows into its Asia Pacific equity funds were positive at £0.5 billion.
Elsewhere, the hunt for income drew investors to its high yield bond range, where inflows stood at £103 million.
Double bond fund launch
At the same time, Aberdeen said it was launching two bond funds to allow investors to diversify their existing fixed income portfolios.
The Aberdeen Global - World Government Bond fund, managed by the Jozsef Szabo-headed global macro team, is designed to offer investors a source of diversification through investment in government bonds from across the world.
It will have limited exposure to sub-investment grade bonds and will seek to maximise total returns mainly through investment grade sovereign debt where default rates have remained near-zero.
'Bonds play an important role in diversified portfolios, providing consistent annual income payments and defensive qualities. However, investors must be discerning and selective,' Szabo said.
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