Aberdeen Investments today said it has partnered with Heng An Standard Life (Asia) (HASL Asia) by making the abrdn SICAV I – Short Dated Enhanced Income fund available on HASL Asia’s investment-linked insurance platform in Hong Kong.
With a monthly payout of 5.5% a year, the fund aims to achieve a yield in excess of the Bloomberg Global Corporate Aggregate 1-3 Year Index (USD Hedged) over rolling three-year periods (before charges).
Tina Tong, head of wholesale distribution, Hong Kong at Aberdeen, commented: “Given the current volatility in investment markets and the diverging central bank policies worldwide, this fund emerges as a valuable addition to income-focused portfolios, aiming for an attractive yield and realised return over cash, with only a moderate increase in risk.”
Short-dated credit has historically shown resilience, delivering 17 separate calendar years of positive returns out of the past 20 years, with only three negative years, according to Aberdeen.
Harriet Zhang, chief investment officer of HASL Asia, added: “With the demographic trend of rising life expectancy and the increasing cost of living, many investors are in search of reliable income streams to support their financial goals. This fund offers an attractive solution for those seeking to achieve stable income, with a strong focus on avoiding loss of capital.”
The introduction of the abrdn SICAV I – Short Dated Enhanced Income fund is responding to investor demand for higher yielding instruments with stable income streams amid market volatility, according to Aberdeen.
The fund also offers favorable money market like liquidity (T+1 settlement for both subscriptions and redemptions), hence investors won’t have to sacrifice flexibility for potentially superior returns, the asset manager said.
