Aberdeen Standard has closed one of its Latin American-focused bond strategies, Citywire Selector has learned.
The Brazil-focused strategy, which was launched in 2012, was closed due to it being sub-scale and failing to attract the level flows in recent years that some of other funds have experienced.
Speaking to Citywire Selector, Diment said: ‘So far this year we have seen particular interest in our frontier market bond and emerging market corporate bond strategies, as investors continue to diversify their fixed income exposure.'
He added that there are risks connected to frontier market bond allocations, however they are less correlated to traditional fixed income markets and provide attractive income.
‘We’re seeing more and more investors allocating emerging market corporate bonds as they recognise the balance sheet and business model strength of many emerging market companies,’ he added.
Aberdeen Standard Investments last month decided to liquidate one of its EM government bond funds after key investors transferred their money to one of the firm's Luxembourg-based debt strategies.
Meanwhile, the asset manager has launched two other EMD funds this year, these being the Emerging Markets Bond Fixed Maturity 2023 Fund and Emerging Market Debt Sustainable and Responsible Investment strategies.