Friday, November 09, 2012
Aberdeen Launches EM Debt Fund
Reported by Tommy Fernandez
Aberdeen Asset Management Inc. [profile
] has launched the Aberdeen Emerging Markets Debt Fund (Class A Ticker: AKFAX) in response to continued growing investor interest in the emerging market debt asset class.
The Aberdeen Emerging Markets Debt Fund invests across the emerging markets debt universe, including hard and local currency sovereign bonds and corporates.
In contrast, the Aberdeen Emerging Markets Debt Local Currency Fund (Class A Ticker: ADLAX), which was launched in May 2011, invests primarily in fixed income securities that are denominated in the currency of emerging market countries. Both funds are managed by Aberdeen's Emerging Market and Sovereign Debt team, led by Brett Diment.
The move follows through on Aberdeen’s long-term plans for growing aggressively in the United States, recently reported
Company Press Release
Aberdeen Launches Second Mutual Fund Dedicated to Emerging Market Debt Investing
PHILADELPHIA, Nov. 8, 2012 -- Aberdeen Asset Management Inc. has launched the Aberdeen Emerging Markets Debt Fund (Class A Ticker: AKFAX) in response to continued growing investor interest in the emerging market debt asset class.
The Aberdeen Emerging Markets Debt Fund invests across the emerging markets debt universe, including hard and local currency sovereign bonds and corporates. In contrast, the Aberdeen Emerging Markets Debt Local Currency Fund (Class A Ticker: ADLAX), which was launched in May 2011, invests primarily in fixed income securities that are denominated in the currency of emerging market countries. Both funds are managed by Aberdeen's Emerging Market and Sovereign Debt team, led by Brett Diment.
Brett Diment, Aberdeen's Head of Emerging Market and Sovereign Debt comments:
"With developed market interest rates hovering near zero, it has become necessary to look for sources of income in other regions. By investing in emerging market bonds, we believe that we can get better credit quality than in developed bond markets and in many cases a higher yield."
Gary Marshall, Aberdeen's Chief Executive, comments:
"In today's uncertain economic climate, investors are increasingly turning to emerging market debt securities in an effort to diversify their fixed income portfolios. As emerging market economies expand, governments and companies based in those economies are looking to domestic and international capital markets to finance growth. In our opinion, this buoyant market segment presents opportunities for investors to benefit from improving companies and countries. We are pleased to provide U.S. investors with a fund that complements Aberdeen's existing range of emerging market debt capabilities, investing across the emerging markets debt universe."
Aberdeen has over 10 years of experience investing in emerging market bonds. Members of the Aberdeen Emerging Market and Sovereign Debt Team have been researching the asset class since 1993. We believe that this depth of experience enhances Aberdeen's ability to interpret ongoing developments in emerging markets and allows us to make sound decisions regarding management of the fund's portfolio.
The fund launch is an integral part of an ongoing strategic initiative to deliver Aberdeen's core investment competencies to the U.S. retail and institutional markets.
About Aberdeen Asset Management
Aberdeen Asset Management PLC, the parent company of Aberdeen Asset Management Inc., is an independently-run asset manager listed on the London Stock Exchange since 1991, and operating from 31 offices in 23 countries ("Aberdeen"). Aberdeen invests on behalf of institutional and wholesale clients, primarily in equities, fixed income, alternative investment strategies and property. The Group manages more than US$286.5 billion of assets for both institutions and private individuals as of June 30, 2012.
Fixed income securities are subject to certain risks including, but not limited to: interest rate (changes in interest rates may cause a decline in the market value of an investment), credit (changes in the financial condition of the issuer, borrower, counterparty, or underlying collateral), prepayment (debt issuers may repay or refinance their loans or obligations earlier than anticipated), extension (principal repayments may not occur as quickly as anticipated, causing the expected maturity of a security to increase) and call (some bonds allow the issuer to call a bond for redemption before it matures). The Fund's investments in high-yield bonds ("junk bonds") and other lower-rated securities will subject the Fund to substantial risk of loss.
Foreign securities are more volatile, harder to price and less liquid than U.S. securities; and are subject to different accounting and regulatory standards, and political and economic risks. These risks are enhanced in emerging markets countries. The Fund is non-diversified and may hold larger positions in fewer securities than other funds and have greater risk than more diversified funds. Derivatives are speculative and may hurt the Fund's performance. They present the risk of disproportionately increased losses and/or reduced gains when the financial asset or measure to which the derivative is linked changes in unexpected ways.
Investing in mutual funds involves risk, including possible loss of principal. There is no assurance that the investment objective of any fund will be achieved.
Investors should carefully consider a fund's investment objectives, risks, fees, charges and expenses before investing any money. To obtain this and other fund information, please call 866-667-9231 to request a summary prospectus and/or prospectus, or download at www.aberdeen-asset.us. Please read the summary prospectus and/or prospectus carefully before investing any money.
The views expressed represent the opinions of Aberdeen and are not intended as a forecast or guarantee of future results.
Aberdeen Funds distributed by Aberdeen Fund Distributors LLC, Member FINRA, 1735 Market Street, 32nd Floor, Philadelphia, PA 19103.
In the United States, Aberdeen Asset Management is the marketing name for the following affiliated, registered investment advisers: Aberdeen Asset Management Inc., Aberdeen Asset Managers Ltd, Aberdeen Asset Management Ltd and Aberdeen Asset Management Asia Ltd, each of which is wholly owned by Aberdeen Asset Management PLC.
"Aberdeen" is a U.S. registered service mark of Aberdeen Asset Management PLC.
SOURCE Aberdeen Asset Management Inc.
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