2013 Lipper Awards
Lastest export from Asia: Bonds
AdamMcCabe of Aberdeen Asset Management talks up the power of positive real yields, which mostly can be found in the debt markets in the Far East.
One of the key problems for investors is that bond yields around the world are historical lows. If anything Central Banks are to blame because they are pursuing extra ordinary policy settings. And one of the key problem is that, if they are successful, then bond yields are too low and that place is at risk investments in developed market bond-- developed bond markets. As a result, one should be looking at alternatives. Alternatives in places that have very sound balanced sheets. So from-- the way Central Banks have credibility and, well yields are on its lowest if anything want or should be looking at positive really yields in places like Asia enjoy such affect us. The opportunities in Asia for fixed income investors lie in the fact that the economies enjoy very strong fundamentals that yields in many countries still a positive in a real perspective. But also that the currencies to a large extent remained undervalued and as a result investors globally can enjoy sound structural support positive real yields and the benefit of appreciating currencies on a longer term basis. But it's important to keep in mind that Asian bonds-- Asian debt more generally is not an emerging market in the way that many people classified emerging market bonds. For example, Korea, Singapore-- these countries are considered developed markets. They are part of a very diverse opportunity that presents itself in Asia. The Aberdeen Asian Bond Fund invests approximately 5 percent of its portfolio in the mainland Chinese bond market. The mainland in Chinese bond market is one that has appealing characteristics because access is limited. Investors need to go through certain approval processes and licensing a requirement. And Aberdeen has a qualified foreign institutional investor's license. We use that [unk] license to invest in the mainland bond market. It is a market that's very stable relative to many others. The market does enjoy the benefit of their being very huge speculative players in the markets. The support for the bond market there in China is very much structurally on one side.
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