Aberdeen has combined three bond portfolios under Anthony Fletcher and will use wider Ucits III powe...
Aberdeen has combined three bond portfolios under Anthony Fletcher and will use wider Ucits III powers on the resulting single offering.
The group has merged two former DWS portfolios, the £77.3m Corporate Bond Plus and £8.8m Corporate Bond funds with the £7.5m Gilt Income product to create Aberdeen Corporate Bond. Fletcher was manager of the previous Corporate Bond and Corporate Bond Plus offerings and will head the merged product.
Sitting in the UK Corporate Bond sector, the vehicle has amended its investment objective to outperform the peer group by two percentage points per annum.
Fletcher said insufficient demand for the funds in their previous incarnations forced the group to combine them. On the merged vehicle he will use derivatives, take higher conviction positions and hedge out unwanted risk, all powers available under Ucits III.
"The use of tools such as credit default swaps, futures and options, as well as structured credit, gives managers more scope to put their investment views into practice," he added.
As part of the changes, the fund also has scope to gain exposure to emerging market debt.
"The strategy will broaden the investable universe from 1,000 to 11,000 issues and will include exposure to high yield and emerging debt markets," he added.
Under the structure, Fletcher will also adopt an interest rate and currency overlay to add value from the direction of markets.
Former manager of the Gilt Income fund Chris Langford will continue to run money for the group in the institutional space.