A feeder fund, the Aberdeen Emerging Opportunities Bond Fund, will invest in the Aberdeen Global Emerging Markets Bond Fund.

The main fund has overweighed 14 per cent of its total bond investment in Argentina, 8 per cent in Indonesia and 7 per cent each in Brazil, Turkey, Russia and Ukraine, while investing in the Thai bond market at only 1 per cent.

Kevin Daly, portfolio manager on the fixed-income emerging-markets team in London, said Argentina's ability to repay debt was high, as its political situation was now stable, and its gross domestic consumption was growing at 9 per cent, compared with 1-2 per cent when the country fell into economic crisis.

He said Indonesia's political situation was positive for investment, as a lot of inflow had flooded into both fixed-income and equity markets.

Since the start of this year, the net foreign-fund flow in the Asian market was about Bt30 billion. A total of Bt2.3 billion was recorded in the Bt5.89-trillion capitalisation of the Thai market.

Daly said the proportions in this portfolio investment should be similar over the next three years, as these emerging economies pick up.

The annualised return since inception was 19.43 per cent, compared with the 12.59-per-cent benchmark. According to the five-year annualised standard deviation, the Aberdeen Global Emerging Markets Bond Fund produced about 12-per-cent return, with about 9-per-cent volatility.

Piyarat     Setthasiriphaiboon

The Nation