Aberdeen to launch hedged share classes on bond funds

Aberdeen is launching hedged share classes on two of its bond funds to reduce currency risk and the effect of exchange rate fluctuations.

The firm is unveiling a US dollar-hedged share class on its Aberdeen Global - Select Euro High Yield Bond fund and a euro-hedged share class on its Aberdeen Global - Select Emerging Markets Bond fund.  Both will go live at the end of March. 

The aim of the hedged share classes is to mitigate the impact of exchange rate movements between the funds’ base currencies and the currency to which the investor wants exposure.

The Emerging Markets Bond sicav, domiciled in Luxembourg with its base currency in dollars, is managed by Brett Diment and has returned 43.2% over three years to 22 February, versus the benchmark’s 40.3%.

The Euro High Yield Bond fund sicav, with a base currency in euros, is managed by Paul Reed who has delivered 27.2% over three years to 22 January, versus the benchmark’s 36.9%.