Aberdeen Standard Global Corporate Bond Fund aims to provide long term growth and outperform the Benchmark over rolling 3 year periods (before deduction of fees, costs and taxation) by investing predominantly in global investment grade bonds. The Fund is actively managed and may invest in a wide range of bonds (e.g. corporate bonds including high yield bonds, government backed securities, overseas bonds, index-linked bonds, floating rate notes (‘FRNs’) and asset backed securities (‘ABSs’) and/or money market instruments) in order to take advantage of opportunities identified.
The Fund underperformed the benchmark in August, as exposure to A rated bonds detracted.
Anglo American detracted, as economic data suggests a more challenging landscape. In banking, negative contributions from Bank of America, Citigroup and Wells Fargo were partially offset by positive performance from selective holdings in Virgin Money, UBS and HSBC.
In the primary market, we bought attractive new US dollar issues, including the 2053 bonds of McDonald’s, the 2028 bonds of Ingersoll Rand and the 2054 bonds of ConocoPhillips. In euros, we bought the 2033 bonds of LVMH and the 2028 bonds of Amprion.
We tactically increased the Fund’s cash positions over the month, as we expect a busy primary season from September onwards. This included selling KBC, which has outperformed recently, and Berry Global, to reduce our high yield risk.
What is Aberdeen Std Global Corporate Bond Fd Aberdeen Std Global Corporate Bond Fd is an Managed Funds investment product that is benchmarked against Global Aggregate Hdg Index and sits inside the Fixed Income - Bonds - Global Index. Think of a benchmark as a standard where investment performance can be measured. Typically, market indices like the ASX200 and market-segment stock indexes are used for this purpose. The Aberdeen Std Global Corporate Bond Fd has Assets Under Management of 266.14 M with a management fee of 0.5%, a performance fee of 0.00% and a buy/sell spread fee of 0.33%.
How has the investment product performed recently?
The recent investment performance of the investment product shows that the Aberdeen Std Global Corporate Bond Fd has returned 3.63% in the last month. The previous three years have returned -3.76% annualised and 6.61% each year since inception, which is when the Aberdeen Std Global Corporate Bond Fd first started.
How is risk measured in this investment product?
There are many ways that the risk of an investment product can be measured, and each measurement provides a different insight into the risk present. They can be used on their own or together to perform a risk assessment before investing, but when comparing investments, it is common to compare like for like risk measurements to determine which investment holds the most risk. Since Aberdeen Std Global Corporate Bond Fd first started, the Sharpe ratio is 0.11 with an annualised volatility of 6.61%. The maximum drawdown of the investment product in the last 12 months is -4.23% and -19.94% since inception. The maximum drawdown is defined as the high-to-low decline of an investment during a particular time period.
What is the relative performance of the investment product?
Relative performance is what an asset achieves over a period of time compared to similar investments or its peers. Relative return is a measure of the asset's performance compared to the return to the other investment. The Aberdeen Std Global Corporate Bond Fd has a 12-month excess return when compared to the Fixed Income - Bonds - Global Index of 2.35% and 0.67% since inception.
Does the investment product produce Alpha over its Peers?
Alpha is an investing term used to measure an investment's outperformance relative to a market benchmark or peer investment. Alpha describes the excess return generated when compared to peer investment. Aberdeen Std Global Corporate Bond Fd has produced Alpha over the Fixed Income - Bonds - Global Index of 0.16% in the last 12 months and 0.06% since inception.
What are similar investment products?
For a full list of investment products in the Fixed Income - Bonds - Global Index category, you can click here for the Peer Investment Report.
What level of diversification will Aberdeen Std Global Corporate Bond Fd provide?
Aberdeen Std Global Corporate Bond Fd has a correlation coefficient of 0.92 and a beta of 1.32 when compared to the Fixed Income - Bonds - Global Index. Correlation measures how similarly two investments move in relation to one another. This establishes a 'correlation coefficient', which has a value between -1.0 and +1.0. A 100% correlation between two investments means that the correlation coefficient is +1. Beta in investments measures how much the price moves relative to the broader market over a period of time. If the investment moves more than the broader market, it has a beta above 1.0. If it moves less than the broader market, then the beta is less than 1.0. Investments with a high beta tend to carry more risk but have the potential to deliver higher returns.
How do I compare the investment product with its peers?
For a full quantitative report on Aberdeen Std Global Corporate Bond Fd and its peer investments, you can click here for the Peer Investment Report.
How do I compare the Aberdeen Std Global Corporate Bond Fd with the Global Aggregate Hdg Index?
For a full quantitative report on Aberdeen Std Global Corporate Bond Fd compared to the Global Aggregate Hdg Index, you can click here.
Can I sort and compare the Aberdeen Std Global Corporate Bond Fd to do my own analysis?
To sort and compare the Aberdeen Std Global Corporate Bond Fd financial metrics, please refer to the table above.
Has the Aberdeen Std Global Corporate Bond Fd been independently verified by SMSF Mate?
This investment product is in the process of being independently verified by SMSF Mate. Once we have verified the investment product, you will be able to find more information here.
How can I invest in Aberdeen Std Global Corporate Bond Fd?
If you or your self managed super fund would like to invest in the Aberdeen Std Global Corporate Bond Fd please contact Level 10, 255 George Street, Sydney, NSW, 2000 via phone +61 02 9950 2888 or via email client.service.aust@aberdeenstandard.com.
How do I get in contact with the Aberdeen Std Global Corporate Bond Fd?
If you would like to get in contact with the Aberdeen Std Global Corporate Bond Fd manager, please call +61 02 9950 2888.
Comments from SMSF Mates
SMSF Mate does not receive commissions or kickbacks from the Aberdeen Std Global Corporate Bond Fd. All data and commentary for this fund is provided free of charge for our readers general information.
Performance Commentary - July 31, 2023 The Fund outperformed its benchmark, mostly due to good stock selection.
Financial holdings performed well in the month. In banks, Sumitomo Mitsui and the subordinated financials of Barclays gained, as did insurer MetLife . In real estate, Sirius and CBRE performed well. On the downside, Deutsche Telekom, British supermarket Tesco and Heathrow Airport weighed on returns.
Primary market activity was quieter in the month. We bought attractive new issue US dollar bonds such as the 2028 bonds of BFCM, the 2034 bonds of Waste Management and the 2029 bonds of Morgan Stanley. We also bought Toyota’s 2030 bond and Heathrow’s 2033 bonds in euros. In the secondary market, we topped up preferred US bank holdings, including JPMorgan. After a Wall Street Journal investigation into usage of lead cables by US telecommunications companies, we switched our holdings of AT&T into shorterdated positions. Lastly, we reduced our holding of Celanese.
Performance Commentary - April 30, 2023 The Fund underperformed its benchmark, mostly due to stock selection in A rated bonds.
On the whole, bank holdings struggled, amid wider concerns about the sector, including Bank of America and Citigroup. Aerospace and defence contractor Lockheed Martin also lagged. On the upside, the property sector rebounded from recent underperformance, as our holdings of CBRE and Sirius outperformed. Deutsche Bank, Société Générale, NatWest and Deutsche Bank were also beneficial.
In the primary market, we bought attractive euro new issue bonds, including the 2026 and 2030 bonds of Sika and the 2026 bonds of BPCE. In US dollars, we bought Morgan Stanley’s new 2029 bonds, Wells Fargo’s 2034 bonds and Walmart’s 2053 bonds.
In the secondary market, we topped up Truist, one of the better quality US regional banks, which was available at a good price following turmoil in the banking sector. On the sell side, we sold the recently issued MetLife 2030 bond, to reduce risk in insurers. We also sold down Boston Scientific. The company is weighing an acquisition of Shockwave Medical, which could be detrimental to debt investors.
Performance Commentary - March 31, 2023 The Fund outperformed its benchmark in March, owing to good performance from BBB rated bonds.
Amid turmoil in the banking system, our bank holdings performed well. We had no exposure to Silicon Valley Bank (SVB), and benefited from positioning in Bank of America, Citigroup and Wells Fargo.
Deutsche Telekom also outperformed. On the downside, property holdings were among the detractors, including LEG, Sirius and CBRE.
In the primary market, we bought attractive new issue bonds including the 2033 US dollar bonds of Medtronic, the 2033 US dollar bonds of General Mills, the 2053 sterling bonds of Engie and the 2031 and 2028 euro dual issue from Anglo American.
In the secondary market, we added the bonds of US insurer Prudential, a conviction name which cheapened up amid the wider weakness in financials. We switched telecommunications holdings from Comcast to Charter, as we considered our Comcast holdings to be fully valued. We also sold our long-dated Salesforce bonds, as the firm has announced large stock buybacks which could hurt bondholders.
Performance Commentary - February 28, 2023 The Fund marginally outperformed the benchmark. However, positioning in single A rated bonds detracted. Longer dated bonds detracted over the month, including UnitedHealth, Oracle and Lowe’s Companies. Utilities holdings detracted, including Duke Energy and NextEra. On the upside, banks performed well, including JPMorgan, Deutsche Bank, Virgin Money and BPCE. In the primary market, we bought attractive euro new issue banking bonds, including the 2026 callable bonds from Nordea Bank and Virgin Money’s 2028 bonds.
We also bought Orsted’s euro 2035 issue. In US dollars, we bought Amgen’s new 2043 bond and Oracle’s 2053 bonds. In the secondary market, we added a new holding in RELX, buying the 2030 US dollar bonds, which is one of our top choices in the media sector and favourably rated by our analysts. We switched out of Tesco’s euro bonds to buy their cheaper longerdated pound sterling bonds. We also took profits in Omega Healthcare Investors.
Performance Commentary - January 31, 2023 The Fund outperformed its benchmark in January, owing to good stock selection and positioning in A and BBB rated bonds. Bank holdings performed well over the period. In particular, Barclays, Bank of America and Société Générale performed well. In the property sector, holdings in Sunac and Sirius outperformed. On the downside, our US Treasury holdings underperformed in risk-on conditions. We have zero exposure to Aroundtown, which rebounded from recent underperformance. An overweight in Volkswagen also weighed on returns. In the primary market, we bought the attractive euro new issue 2028 bonds of BPCE. In US dollars, we bought the 2034 bonds of PNC Financial and the 2038 bonds of Morgan Stanley. In the utilities sector, we bought Engie’s 2035 and 2043 euro bonds as well as the corporate hybrids of EDP. In the secondary market, we bought the euro 2034 green bonds of EDF, which are more attractive than EDF’s new issue bonds. On the sell side, we sold American Tower’s 2027 and 2028 bonds to reduce risk in light of a rumoured acquisition of Cellnex. We reduced our overweight in T-Mobile and reduced our holding in General Motors.
Performance Commentary - December 31, 2022 The Fund underperformed its benchmark in December, due to our holdings in single A rated bonds. Energy and utility companies underperformed, including Dominion Energy. US banks Citigroup and Bank of America also lagged. Conversely, Barclays was beneficial. Property holdings continued to outperform, including Sirius, Sunac and Shimao. In December, we bought attractive new euro bank bonds, including the 2029 issue from TD Bank and the senior non-preferred 2030 bonds of Société Générale.
In US dollars, we bought the 2033 bonds of Energy Transfer, which has attractive newissue pricing. In the secondary market, we bought a long-dated bond from Amgen, which has been weak following news of its acquisition of Horizon Therapeutics. We also topped up US insurer Centene, which is well priced in its peer group and we see good upside potential. We selectively reduced our euro bank holdings, including BNP Paribas, to raise cash for attractive new issues. We also exited casino owner Vici Properties, taking profits after strong performance
Performance Commentary - October 31, 2022 The Fund outperformed its benchmark in October, thanks to an overweight holding of BBB rated bonds and an underweight holding of A rated bonds. The Fund’s top performer was General Electric. Long-dated holdings performed well over the month, including T-Mobile and UnitedHealth Group. Conversely, property bonds were the biggest detractors over the month. Notably Chinese issuers Sunac and Shimao lagged, as did European companies CTP, Sirius, CBRE and Cromwell. However, this was partially offset by positive returns from having zero exposure to Aroundtown. In October, we bought the attractive new euro 2032 dual issue from Pernod Ricard, as well as a 2042 issue from Germany’s national railway Deutsche Bahn. In US dollars, we bought UnitedHealth’s 2028 and 2053 new issue, Marsh & Mclennan’s 2052 bonds and American Express’ 2027 bond. In the secondary market, we topped up our conviction overweights, including Viatris. We shortened duration in Barclays, switching out of some of our 2029 bonds into attractively priced 2028 bonds. On the sell side, we sold Dell, as we are growing concerned about the outlook for the technology sector.
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