Bangkok--26 Jan--Aberdeen
Aberdeen recommends investors to diversify their investments to emerging market debts through favourable environment in terms of positive economic outlook and expectations that emerging markets will lead the economic recovery with strong economic fundamentals. In addition, emerging markets GDP should reach 50% of global GDP by 2020.
Global emerging markets offer investors attractive long term investment opportunities, with developing countries benefiting from faster growth than the developed world. Driven by exports and fixed capital investment, together with increasing domestic consumption, emerging markets are expected to support growth globally for years to come. Good fundamentals generally now exist at both the country and corporate level, with governments carrying less public debt and corporates having stronger balance sheets following prudent management in recent years.
Mr. Pongtharin Sapayanon, Head of Fixed Income, said “There is positive economic outlook of emerging market in term of attractive long term growth prospects compared to the developed world. Supported by strong fundamentals, lower debt levels, developing countries have better fiscal positions than developed economies. Moreover, favourable demographics and ongoing economic reforms will prompt investors to increase allocation to emerging markets. In addition, there are major improvements in public debt in countries with poor fiscal and inflation history. G10 public sectors are re-leveraging in response to the crisis, and their public debt has shortened. All in all, emerging market countries are in a better position than developed markets”
Aberdeen Emerging Opportunity Bond Fund (AEOB), established since 19th July, 2007, invests in Aberdeen Global - Emerging Markets Bond Fund (master fund). Currently, the master fund is overweight in bonds from Mexico, Brazil and Indonesia which are the countries enjoying impressive growth continuously. The fund seeks to take advantage of this promising investment environment with investments in fixed income securities across emerging markets. Potentially higher yields are the main feature but so too is the investment universe that provides exposure to diverse countries. Liquidity has improved, notably in local markets with the growing participation of both international and domestic investors. We believe the overallstructural improvement confirms growing mainstream acceptance for the asset class -- which offers the potential for attractive total returns.
Mr.Chaikaseam Vadhanasiripong, Head of Funds Distribution, added “Our Aberdeen Emerging Opportunity Bond Fund (AEOB) is another interesting alternative investment for those who are looking for opportunities for good returns from bond markets which are made possible through Aberdeen's investment process and highly professional team of emerging market debt investment managers.
Moreover, Aberdeen is pleased to announce the reduction of Aberdeen Emerging Opportunity Bond Fund (AEOB) front-end fee to 1.00% during February 1-March 31, 2011. In addition, from January 24, 2011 onwards, the fund will start hedging of currency for appropriate portion as deferred fit by the fund managers. Our decision to hedge is based on a fundamental view that Asian currencies, including the Thai Baht, will continue to appreciate in the long term. Stronger economic growth, stable current account surplus, manageable debt profile and higher interest rates relative to developed countries are some of the drivers for Asian currencies to appreciate.
Investment in a foreign investment fund (FIF) is subject to currency risk and may get a return lower than the amount initially invested. Investments contain risks. Investor should study prospectus before making a decision to invest.
For more info, please contact
Chananthima Pinngoen Tel. 0-2352-3382
Head of Marketing Services