Aberdeen Investments has partnered with Heng An Standard Life ( Asia ) ( HASL Asia ) to distribute its latest fund in Hong Kong.

The abrdn SICAV I - Short Dated Enhanced Income Fund aims to achieve a combination of income and growth, while seeking to provide liquidity and avoid loss of capital, by investing in high-quality bonds globally with a maturity of up to five years.

Offering a monthly payout of 5.5% per annum, the fund aims to achieve a yield above the Bloomberg Global Corporate Aggregate 1-3 Year Index ( USD Hedged ) over rolling three-year periods before charges.

Currently, it is exclusively available on HASL Asia’s investment-linked insurance platform in Hong Kong.

“This fund reflects Aberdeen’s commitment to offering innovative solutions that aim for sustainable and long-term returns,” says Tina Tong, head of wholesale distribution, Hong Kong, at Aberdeen. “Given the current volatility in investment markets and the diverging central bank policies worldwide, this fund emerges as a valuable addition to income-focused portfolios, aiming for an attractive yield and realized return over cash, with only a moderate increase in risk.”

Track record of stability

Short-dated credit has historically shown resilience, delivering 17 separate calendar years of positive returns out of the past 20 years, with only three negative years, based on the ICE Bank of America 1-3 Year Global Corporate Index ( March 2025 ).

This track record of stability, attributed to its lower sensitivity to interest rate fluctuations, positions short-dated credit as a reliable investment, especially in uncertain market conditions, Aberdeen says.

Harriet Zhang, HASL Asia’s chief investment officer, adds: “With the demographic trend of rising life expectancy and the increasing cost of living, many investors are in search of reliable income streams to support their financial goals. This fund offers an attractive solution for those seeking to achieve stable income, with a strong focus on avoiding loss of capital.”

With markets likely to remain volatile and rates to come down at a slower pace, yields of short-term cash management instruments such as fixed-term deposits and money market funds have declined and are expected to continue falling, making them less appealing to investors looking for stable income, Aberdeen says.

The introduction of the abrdn SICAV I - Short Dated Enhanced Income Fund seeks to meet investor demand for higher-yielding instruments with stable income streams amid the market volatility.

The fund also offers favourable money market-like liquidity ( T+1 settlement for both subscriptions and redemptions ), and as such, investors won't have to sacrifice flexibility for potentially superior returns, it adds.