Bangkok--27 Jun--Aberdeen Asset Management Aberdeen Asset Management is to launch its first fixed income foreign investment fund, the Aberdeen Emerging Opportunities Bond Fund. The IPO period will be from July 4 to July 17, 2007. The Aberdeen Emerging Opportunities Bond Fund will invest in bonds issued by governments and companies across the developing world, both hard and local currency issues. The fund will be managed for a high total return. Its underlying fund, Aberdeen Global Emerging Markets Bond Fund, is based in Luxembourg and has achieved annualised returns of 17% since its inception in August 2001*. Explaining this asset class, Kate Hathirat, CFA, Head of Fixed Income at Aberdeen Asset Management in Bangkok, said better conditions had followed macroeconomic and fiscal reforms across emerging markets. In many countries there is now a virtuous circle of falling inflation and hence interest rates, higher growth and strengthening currencies. “The extent of structural reforms has been very encouraging, and this is reflected in declining volatility and stellar performance of emerging market bonds. Many countries have been focusing on developing their local yield curves, resulting in a more stable form of long-term financing.”, she said. Hathirat also noted that declining emerging market risk premiums should continue to be supported by improving credit fundamentals in many of the key markets. She emphasised the scope for further sovereign credit upgrades: “Some countries have debt to GDP levels comparable with developed markets, yet their ability to service borrowing isn’t properly reflected in prices.” Moreover, foreign investors have been increasing their allocation to emerging market debt, while sovereigns are buying back their bonds particularly those issued in hard currencies, reducing the supply and pushing up the bond prices. The underlying fund is managed by Aberdeen’s eight-man investment team based in London under Brett Diment, who has sixteen years’ experience in the asset class. His team draws on the Group’s expertise worldwide. It uses a combination of top-down global macroeconomic analysis and bottom-up security selection. The investment strategy is to apply fundamental research with analysis of technical factors, such as the supply-demand balance, duration and relative value. Kevin Daly, Fixed Income Fund Manager, Aberdeen Asset Management Plc said “currently the funds have high allocation in Brazil, Turkey, Russia, and Indonesia, among others, with investments spread across 20-25 markets. Diversification is a main source of portfolio strategy as well as risk control. There is some allocation in Thai bonds in the portfolio at present”. Hatirat further said “the Aberdeen Emerging Opportunities Bond Fund will give Thai investors an excellent opportunity to diversify risk and improve total portfolio returns. Historically, this fund has very low correlation with other asset class. Thai bond investors will have a chance to pick up higher yield in emerging market bonds, while diversifying their returns and risks into other parts of the world with very different economic dynamics. Thai equity investors will find this a lower-volatility alternative, while not sacrificing much returns." Aberdeen says the Thai feeder fund is suitable for investors who have medium to long investment horizon. Even though the fund has great potential for high returns, it is considered high risk within the fixed income asset class. Recent volatility has, however, been low relative to the high returns generated by the asset class. This is Aberdeen’s fourth FIF and it is currently one of the leading FIF managers based on total asset under management in excess of 6.5 billion baht.** The Aberdeen Emerging Opportunities Bond Fund will be exclusively distributed by Aberdeen, Phatra Securities, Citibank, Standard Chartered, HSBC, and Deutsche Bank during the IPO from 4th July — 17th July 2007. Thereafter, it will also be distributed by Aberdeen’s other distributors. It will hold its launch seminar on the 27th June 2007. * Source: Lipper NAV to NAV, gross income reinvested, net of annual fees to end Apr 2007 * *Source: Total NAV of Aberdeen’s foreign investment funds as of 25th May 2007Note to Editors: Aberdeen Asset Management Co., Ltd. is part of the Aberdeen Group, the global asset management group whose investments around the world hiked to US$164 billion as of 30th May, 2007. So far, the total assets of Aberdeen in Thailand sum up to US$2.4 billion. The Aberdeen Group has registered in London Stock Exchange, having 89 fund managers in total and 25 offices around the world. FOR MORE INFORMATION PLEASE CONTACT: Khun Nontakorn Kijthanapaisan Tel. 0-2352-3332 [email protected] Warning Investment involves risks, investors should gather and understand the information before deciding on investment Past performances of funds will not guarantee their future performances. www.aberdeen-asset.co.th