Abrdn has relaunched two funds within its unconstrained, diversified fixed income range, amid expectations of inflation volatility, central bank policy shifts and unpredictable bond markets.
The asset manager said that with a growing need for solutions which have a low correlation to both equities and bonds, the relaunches are focused on straightforward, liquid and transparent areas of the market.
With name changes taking effect from May 16, 2024, the Absolute Return Global Bond Strategies Fund has become the Macro Fixed Income Fund, while The Total Return Credit fund has become the Global Income Bond fund.
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These abrdn SICAV II funds, which will be available for wholesale, retail and institutional investors in the UK and overseas (ex US), will target “less correlated returns and lower drawdowns than traditional fixed income funds”.
They will use strategies which the asset manager believes are “difficult to replicate elsewhere” to help clients grow and preserve their wealth, distinct from traditional fixed income funds which are managed relative to a benchmark index”.
According to the asset manager, the Macro Fixed Income Fund offers a unique solution for clients – targeting diversified returns and low drawdowns. As global macro volatility rises, the portfolio is well placed to capitalise on market dislocations and changing dynamics in liquid fixed income and currencies, they added.
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The second relaunch- Global Income Bond Fund- involves less exposure to bonds with a low credit rating within high yield with an enhanced focus on BBB and BB rated parts of the market in both developed and emerging markets.
The relaunch also included simplification of some of the more complex aspects of the firm’s defensive strategies and making more extensive use of credit derivatives to enhance yield and reduce risk depending on the environment, shared the asset manager.
