Aberdeen Std Global Corporate Bond Fd (ETL0132AU) Report & Performance

What is the Aberdeen Std Global Corporate Bond Fd fund?

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.

Growth of $1000 Investment Over Time

Performance Report

Peer Comparison Report

Peer Comparison Report

Latest News & Updates For Aberdeen Std Global Corporate Bond Fd

Aberdeen Std Global Corporate Bond Fd Fund Commentary August 31, 2023

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.

READ HISTORICAL PERFORMANCE COMMENTARIES

Product Snapshot

  • Product Overview
  • Performance Review
  • Peer Comparison
  • Product Details

Product Overview

Fund Name APIR Code
? A Product Code is unique a identifier code issued by a group or governing body, to reference products in a large group. For an example, APIR codes are commonly used for Funds and Ticker codes are commonly used for Securities such as ETFs and Stocks.
Structure
?
Asset Class
? An Asset Class breakdown provides the percentages of core asset classes found within a mutual fund, exchange-traded fund, or another portfolio. Asset classes (in microeconomics and beyond) generally refer to broad categories such as equities, fixed income, and commodities.
Asset Category
? An Asset Category is a grouping of investments that exhibit similar characteristics and are subject to the same laws and regulations. Asset categories (or a sub-asset class) are made up of instruments which often behave similarly to one another in the marketplace, looking down to the Asset Category level is important if looking to build a diversified portfolio.
Peer Benchmark Name
? A Peer Index (benchmark) refers to a peer group of investment managers who have the same investment style or category. It is used to compare the performance of one manager to their peer group, which makes it simpler for investors to choose between the vast number of investment managers.
Broad Market Index
? A Market Index (benchmark) refers to a hypothetical portfolio of investments that represents a segment, asset or category of an investable market. Market Indices are used to benchmark managers performance, to assist their style reliability and ability to provide excess returns.
FUM
? Funds/Assets under management (AUM) is the total market value of the investments that a person or entity manages on behalf of clients. Assets under management definitions and formulas vary by company.
Management Fee
? A management fee is a charge levied by an investment manager for managing an investment fund. The management fee is intended to compensate the managers for their time and expertise for selecting finanical products and managing the portfolio.
Performance Fee
? A performance fee is a payment made to an investment manager for generating positive returns. This is as opposed to a management fee, which is charged without regard to returns. A performance fee can be calculated many ways. Most common is as a percentage of investment profits, often both realized and unrealized. It is largely a feature of the hedge fund industry, where performance fees have made many hedge fund managers among the wealthiest people in the world.
Spread
? A spread can have several meanings in finance. Basically, however, they all refer to the difference between two prices, rates or yields. In one of the most common definitions, the spread is the gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity. This is known as a bid-ask spread.
Aberdeen Std Global Corporate Bond FdETL0132AUManaged FundsFixed IncomeBonds - GlobalFixed Income - Bonds - Global IndexGlobal Aggregate Hdg Index266.14 M0.5%0.00%0.33%

Performance Review

Fund Name Last Month
? Returns after fees in the most recent (last) month).
3 Months Return
? Returns after fees in the most recent 3 months.
1 Year Return
? Trailing 12 month returns.
3 Years Average Return
? Average Annual returns from the last 3 years.
Since Inc. Average Return
? Average (annualised) returns since inception
1 Year Std. Dev. (Annual)
? The standard deviation (or annual volatility) of the last 12 months.
3 Years Std. Dev. (Annual)
? The average standard deviation (or annual volatility) from the last 3 years.
Since Inc. Std. Dev. (Annual)
? The average standard deviation (or annual volatility) since the fund inception.
1 Year Max Drawdown
? The maximum drawdown in the last 12 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
3 Year Max Drawdown
? The maximum drawdown in the last 36 months - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Since Inc. Max Drawdown
? The maximum drawdown since inception - a drawdown is a peak-to-trough decline during a specific period for an investment, trading account, or fund.
Aberdeen Std Global Corporate Bond Fd1.34%0.44%4.11%-3.42%1.84%6.92%7.93%6.54%-3.81%-19.94%-19.94%

Peer Comparison

Fund Name Peer Index Name
? A group of individuals who share similar characteristics and interests are called peer groups. Peer group analysis is an essential part of assessing a price for a particular stock in investment research. The emphasis here is on making a comparison, meaning that the peer group constituents should be more or less identical to the company being examined, especially in terms of their main business and market capitalization areas.
12 Months Excess Return
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
Excess Return Annualised Since Inception
? Excess returns are an important metric that helps an investor to gauge performance in comparison to other investment alternatives. In general, all investors hope for positive excess return because it provides an investor with more money than they could have achieved by investing elsewhere.
12 Months Alpha
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market return over 12 months. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
Alpha Annualised Since Inception
? Alpha is used in finance as a measure of performance, indicating when a strategy, trader, or portfolio manager has managed to beat the market annualized since inception. Alpha, often considered the active return on an investment, gauges the performance of an investment against a market index or benchmark that is considered to represent the market’s movement as a whole.
12 Months Beta
? Rolling 12Month Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
Beta Annualised Since Inception
? Beta is a measure of the volatility—or systematic risk—of a security or portfolio compared to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which describes the relationship between systematic risk and expected return for assets (usually stocks).
12 Months Tracking Error
? 12Month Tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark over the last 12 months. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
Tracking Error Since Inception
? Since Inception tracking error is the difference in actual performance between a position (usually an entire portfolio) and its corresponding benchmark since inception. The tracking error can be viewed as an indicator of how actively a fund is managed and its corresponding risk level. Evaluating a past tracking error of a portfolio manager may provide insight into the level of benchmark risk control the manager may demonstrate in the future.
12 Months Correlation
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Correlation Since Inception
? Correlation, in the finance and investment industries, is a statistic that measures the degree to which two securities move in relation to each other. Correlations are used in advanced portfolio management, computed as the correlation coefficient, which has a value that must fall between -1.0 and +1.0.
Aberdeen Std Global Corporate Bond FdFixed Income - Bonds - Global Index2.58%0.68%NA%NA%NA%1.322.07%3.32%0.990.92

Product Details

Fund Name Verifed by SMSF Mates Manager Address Phone Website Email
Aberdeen Std Global Corporate Bond FdYesLevel 10, 255 George Street, Sydney, NSW, 2000+61 02 9950 2888https://www.abrdn.com/en/australia/investorclient.service.aust@aberdeenstandard.com

Product Due Diligence

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 1.34% in the last month. The previous three years have returned -3.42% annualised and 6.54% 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 NA with an annualised volatility of 6.54%. The maximum drawdown of the investment product in the last 12 months is -3.81% 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 2.58% and 0.68% 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 NA% in the last 12 months and NA% 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.

Historical Performance Commentary

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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