Managed by the group’s emerging markets team, which is led by Brett Diment, the Aberdeen Emerging Markets Bond fund will have a blended portfolio of hard and local currency, with sovereign and corporate debt and an initial target yield of 6 to 6.5 per cent. Income will be distributed monthly.
The launch of the fund is in line with Aberdeen’s outlook for a strong showing in the emerging markets region in 2011.
"Emerging economies and companies are generally in robust financial health," said Diment, whose team manages more than $5bn in assets.
"Given their strong fundamentals and relative appeal compared to G-7 fixed income securities, investors should consider diversifying their portfolios into emerging market debt."
The Aberdeen High Yield Bond fund aims to provide an attractive level of monthly income with the opportunity for some long-term capital return. The initial target yield will be 8 to 8.5 per cent. Managed by Aberdeen's six-strong high yield bond team, led by Paul Reed, the fund proposes to benefit from low interest rates in 2011.
"With interest rates likely to remain relatively low, high yield bonds will remain attractive to investors searching for income," said Reed, who supports a bottom-up investment process.
"We anticipate another positive year for the sector in 2011, with high income supported by modest capital appreciation. Defaults should remain low supported by improving trends in company results, despite the weak macro-economic backdrop."
The launches follow latest Investment Management Association (IMA) data revealing bonds as the best selling sectors in 2010.
Performance of sectors over 1-yr
Source: Financial Express Analytics
Financial Express data shows the IMA Global Bonds and IMA UK Gilt sectors falling behind IMA UK Equity Income in the past year.
Norwest Consultants' Harry Katz said: "The emerging markets bonds story is good, but this is what I call 'me too' syndrome. Investec have just done this."
"I’d only consider investing in a new fund if it was unique and I thought the company can think outside the box."