In these times of low interest rates and inflationary pressures, high yield bonds provide a golden opportunity for investors seeking an attractive level of income.
Corporate balance sheets are in good shape. And as trends in company results continue to improve, the low default environment should endure. High yield also has the advantage of being relatively immune to inflation, compared to some government and corporate bonds.
Tradition has it, however, that high-return can mean high-risk. At Aberdeen, we believe that detailed, hands-on research to understand these risks is essential – in other words, we have to kiss a lot of frogs to find the very occasional prince.
Our high yield bond team has a robust record of picking princes and delivering high income from its funds: the team’s talent, experience and an award winning investment process, means our High Yield Bond Fund targets a monthly distribution yield of 8.5% p.a.** from a well spread portfolio.
|Aberdeen High Yield Bond Fund|
|Benchmark:||Merrill Lynch European Currency High Yield Constrained Index Hedged GBP|
|Sector:||IMA £ High Yield Bond|
|Inception:||9 March 2011|
** The Distribution Yield reflects the amounts that may be expected to be distributed over the next 12 months as a percentage of the mid-market share price of the fund at the date shown. The Distribution and Underlying Yields are based on a snapshot of the portfolio on that day. The yields do not include any preliminary charge and investors may be subject to tax on distributions. The fund may distribute coupon income and a portion of the fund’s income is charged to capital. This has the effect of increasing the distributions for the year and constraining the fund’s capital performance to an equivalent extent.