To CCC or not to CCC, that is the question
With rate cuts on the horizon, what’s next for US high-yield bonds? We share our views.
Low correlation with many markets and low volatility of Indian rupee (5%) vs emerging market currency basket (17%) (1)
Outperformed in the last 10 years across many asset classes, beating Asian equities (35%) and emerging market bonds (-11%) (2)
Less than 2% owned by foreign investors and zero allocation in global and emerging market (EM) indices is beneficial for early movers into Asia ex-Japan’s 2nd largest sovereign market (3)
Receive monthly income(4) from a fund with a running yield of 7.3%p.a.(5) Source: abrdn, 31 October 2023. Running yield is not representative of payout yield.
Invests in government, state, quasi and corporate debt; can hold bonds denominated in rupees and USD resulting low volatility of 5.5% (6)
Bypasses complex Indian market rules for international investors
(1) Source: Bloomberg, emerging market ex-Asia currency basket, 1-year implied volatility, 31 October 2023.
(2) Source: Bloomberg, USD, Indian bonds represented by Markit iBoxx ALBI India, Asian Equities represented by MSCI AC Asia Ex Japan, Emerging Market Bonds represented by JPM GBI-EM Global Diversified, 10 years to 31 October 2023.
(3) Source: Bloomberg, 28 August 2023. Bloomberg data shown for illustrative purposes only. No assumptions regarding future performance should be made.
(4) Aims at monthly distribution. Dividends are not guaranteed and may be paid out of investment income, capital gains or capital at the discretion of the Board of Directors. Any dividends paid and distributed out of the Fund’s capital will result in an immediate reduction of the Fund’s Net Asset Value per share. Past dividends are not a guide to future dividends. Please refer to our literature webpage for additional disclosures on the income statistics of the Fund.
(5) Source: abrdn, 31 October 2023. Running yield is the annual income on an investment divided by its current market value. Running yield is a calculation that divides the income from coupons by the market price of the security. The running yield of the fund is not representative of the payout yield. Past performance does not predict future results.
(6) Source: Morningstar, 3-year standard deviation, A MInc USD share class, 31 October 2023.
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Bloomberg data are for illustrative purposes only. No assumptions regarding future performance should be made.
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