The tendency to hold fixed income assets with strong quality and sound duration till maturity continues to be the norm in Asia, evidenced by Aberdeen Standard Investment’s recent fundraising of $167 million in its fixed maturity bond fund.
Aberdeen Standard Investments, or ASI, successfully launched its fixed maturity plan (FMP) in September with a focus on emerging market bonds. It aims to achieve income and capital preservation until it matures in October 2023 by investing at least two-thirds of its asset sin emerging market government and corporate bonds.
The $167 million raised were sourced from both investors in Asia and Europe.
First FMP
According to ASI’s global head of distribution Campbell Fleming, the new launch marks the first in a series of FMPs aimed to support income investors in a record-low yield environment. «A fixed maturity product could potentially help investors fill this income gap,» Fleming said. «The long-term aim is for the 'Emerging Markets Bond Fixed Maturity 2023 Fund' to be the first in a series of FMPs […] we launch to help meet the needs of investors around the world.»
«Idiosyncratic risk and avoiding defaults are particularly important in FMPs, and our strong emphasis on undertaking detailed fundamental research, including making over 50 country visits each year and over 700 company visits, is key in managing such risks,» added Brent Diment, ASI’s head of global emerging market debt.
