The fund invests in the abrdn SICAV I - Short Dated Enhanced Income Fund, Class Z Acc USD (Master Fund), that allocates at least 70% of the Master Fund's assets to Debt and Debt-Related Securities issued by companies and governments worldwide (including emerging market countries), with a remaining maturity of no more than 5 years. This includes sub-sovereign bonds, inflation-linked securities bonds, and convertible bonds. The Master Fund will invest at least 50% of its assets in investment-grade Debt and Debt-Related Securities and will not exceed 20% of its assets in sub-investment-grade securities. The Master Fund will maintain a minimum average portfolio credit rating of A and a portfolio duration of 1-2 years under normal conditions, with a maximum limit of 2.5 years.
Key highlights of the Master Fund
High quality: The portfolio maintains a minimum average credit rating of A-.
Enhanced yield: The fund aims to deliver a target portfolio yield of SOFR +1.75–2.25%*, with a maximum of 20% allocated to high-yield bonds.**
Low volatility: With a portfolio duration of less than 2 years, the impact of interest rate fluctuations on the portfolio is minimized.
Advanced liquidity: Investors can receive their redemption proceeds within 2 business days (T+2).
*Secured Overnight Financing Rate (SOFR) is a broad indicator of the cost of borrowing money overnight with Treasury securities as collateral. SOFR is based on actual risk-free transactions collateralized by essential risk-free Treasury securities. As of September 29, 2023, the rate was 5.31 (source: Bloomberg). However, this is only the objective of the Master Fund, and it is not a guaranteed return on investment.
**As of September 29, 2023, the Master Fund invested 13.5% of its assets in high-yield bonds.
The Master Fund provides diversification across various sectors and regions, spanning across both developed and emerging markets
Low Duration with Attractive Yield to Maturity1
|Local Fixed Income Fund
|Global Fixed Income Fund
|1.72 - 2.88 years
|3.50 - 8.30 years1
|Yield to Maturity2
|1.99% - 2.43%
|2.85 - 3.42%
|6.42% - 8.50%3
|Mgt. Fee (include VAT)
|1.12% - 0.31%
|Lock up, Term
|investors who can invest at up to 1 year and expect higher returns than deposit
|investors who can invest at least 1 year, seek for liquidity and expect higher returns than deposit
|investors who can invest minimally one year, seek liquidity and expect higher returns than deposit
|investors who can invest at least 3 years and expect higher returns than deposit
1The information provided above pertains to the master fund. A bond with lower duration has lower volatility comparatively to a bond with higher duration. Total return is represented by Yield to Maturity.
2Yield to Maturity (YTM) is defined as the total anticipated return on a bond if it is held until its maturity date. The YTM calculation takes into account the bond's periodic interest payments, the principal amount returned at maturity, and the bond's current market price. It provides an estimate of the bond's overall return, assuming that all interest payments are reinvested at the same rate as the YTM. It is important to note that YTM is not the total return of a mutual fund investment.
3The master fund's Yield to Maturity (YTM) is in US dollars.
4The management fee of the master fund is included in the calculation.
Source: abrdn, 29 September 2023. For illustrative purposes only, based on data from a variety of fund types within a sample group. No assumptions regarding future performance should be made. The investor should understand the risk and specific condition of the fund and should seek additional advice before making a decision to invest.
Available share classes and benefits
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