EUROPE - Aberdeen Asset Managers has launched a range of fixed income alpha funds offering liability driven investment (LDI) solutions to UK and European institutional clients.
The new funds have been tailored to pension funds in a bid to make the LDI approach more accessible.
“A lot of people are interested in the concept of LDI, the hard bit is actually implementing it,” said Dominic Delaforce, co-head of LDI at Aberdeen.
“With this vehicle, we’re hoping to have something that people can actually do, as opposed to just talk about. The pooled fund solution wraps the different elements together into just buying units in one fund.”
Delaforce is confident about the likely interest from pension funds, Aberdeen clients in particular.
“We haven’t had the first investors yet but we’ve got a number of existing clients who are quite interested and we are reasonably down the road in terms of getting them on board. I’m quite confident of getting a reasonable amount into this fund in the next three months,” he said. “It’s there sitting on the shelf and waiting for investment.”
The funds provide investors with exposure to an actively-managed portfolio of global fixed income securities constructed to generate above-average returns overlaid by a tailored duration strategy. The funds will target an annual outperformance of 2% relative to their respective benchmarks.
The Dublin-domiciled vehicle will be invested in global government, investment grade, high yield and emerging market debt bonds. In addition, a series of interest rate and currency overlays will be used to add alpha.
The range includes sub-funds which use swap overlay strategies to allow tailored exposure to certain markets and maturity profiles, and three 50-year maturity funds.
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