Aberdeen launches gov’t and frontier markets bonds, real estate funds

Aberdeen Asset Management has launched three additional funds for investors seeking exposure to government bonds and frontier markets in fixed income, and European real estate secondaries.

The Aberdeen Global World Government Bond fund will invest in a diversified portfolio of global sovereign fixed income securities, including government bonds and quasi government bonds. There will be limited exposure to sub-investment grade debt.

The fund will be measured against a GDP weighted benchmark, which will tilt the portfolio towards growth economies that offer higher income (yields) and lower public debt as a proportion of GDP. Aberdeen said this will take advantage of convergence between emerging and developed economy fixed income markets.

The Fund has already received approximately $75m of initial seed money from an institutional investor. It will be managed by Aberdeen’s global macro team led by Jozsef Szabo. The minimum investment is $1,000.

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.

The fund has been seeded internally to the tune of $10m. It will be managed by Aberdeen’s emerging markets debt team, led by Brett Diment. It will be marketed to institutions and a carries a minimum investment of $200,000.

The Aberdeen European Secondaries Real Estate fund has received €151.5m of initial commitments, with Sweden’s Första AP-fonden (AP1) as lead investor.

The Property Multi-Manager team will construct a portfolio of around 15 funds which will have exposure to over 200 properties in Europe. Lars Graneld and Johan Temse will be the lead managers, and will use Aberdeen’s property multi-manager team based in London, Amsterdam and Stockholm.

Investments in property funds are typically put up for sale by institutional investors for a number of reasons including regulatory requirements, such as the introduction of Solvency II and Basel III, performance, asset allocation. The investment universe available consists of more than 100 funds which are a mix of sector, single country and regional strategies, Aberdeen said.


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