Aberdeen Life European High Yield Bond Fund - Aberdeen Asset ...

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Aberdeen Life European High Yield Bond Fund - Aberdeen Asset ...

OPEN ENDED FUND quarter 2 2009

Aberdeen Life

European High Yield Bond Fund

Performance Data and Analytics to 30 June 2009

Summary investment objective

Aims to provide exposure to an actively managed portfolio that invests primarily in high

yield fixed interest securities denominated in euro and issued by corporations or government

related bodies.

Performance (%)

Annualised performance

3 months 6 months 1 year 3 years 5 years Launch

Fund 35.49 29.71 -15.40 – – -3.66

Benchmark 16.86 21.26 2.21 – – 5.08

Difference 18.63 8.45 -17.61 – – -8.74

Sector ranking 1/20 1/20 16/20 – – 8/12

Quartile 1 1 4 – – 3

Discrete annual returns (%) - year ended 30/06

2009 2008 2007 2006 2005

Fund -15.40 -1.41 – – –

Calendar year performance (%)

YTD 2008 2007 2006 2005

Fund 29.71 -37.54 8.06 – –

Benchmark 21.26 -14.25 7.54 – –

Difference 8.45 -23.29 0.52 – –

Sector ranking 1/20 10/13 1/13 – –

Quartile 1 3 1 – –

Source: Aberdeen Asset Management. Basis: Total Return, Gross of Fees (GBP).

The performance will be reduced by the impact of the management fees paid, the amount of which varies depending

on the share class held, and the terms of any fee arrangement reflected in your policy schedule. The sector average

incorporates the performance of all funds in the sector at any stage during the period while sector rankings reflect the

relative performance of those funds which have been in the sector throughout the period. This may give rise to apparently

incongruous results.

Past performance is not a guide to future performance. The value of shares may go down as well as up and an

investor may not get back the amount invested.

Fund manager’s report

Market review

The Euro high yield market was extremely strong in the second quarter, reaching a low spread

of 11.4% over German government bonds in mid June, before relenting slightly as spreads

widened to 12.2% over German government bonds by quarter end.

Company results continued to deteriorate in the first quarter; a trend which is expected to

continue in the near future. European defaults rose to 5.6% by the end of June and are now

predicted to peak at 15% by year end, before declining to 12.5% on a rolling 12-month basis

to the end of June 2010. These rates are lower than those previously predicted by Moody’s.

Fund review

The fund outperformed in the second quarter from an overweight exposure to PIK bonds and

lower rated credits as risk appetite returned to the markets. There were no defaults in the

portfolio over the period, despite the tick up in the Moody’s default rate. The fund remains

overweight in ‘higher beta’ names to take advantage of further upside in the market.

Liquidity in the market continued to pick up, but is likely to ease off in the seasonally slow

summer period.

Top ten holdings

Sector %

EB Holding (Boats) 11%

31/03/17 Services Non-Cyclical 5.0

Corral Finance FRN 15/04/10 Basic Industry 4.1

Wind Acquistion 0% 21/12/11 Telecommunications 4.0

Beverage Packaging

Holdings 9.5% 15/06/17 Capital Goods 3.6

FMG Fin 9.75% 01/09/13 Basic Industry 3.0

Consol Glass 7.625% 15/04/14 Capital Goods 3.0

Foodcorp 8.875% 15/06/12 Consumer Non-Cyclical 2.9

Beverage Packaging

Holdings 8.0% 15/12/16 Capital Goods 2.8

Edcon Proprietary Ltd

7.395% 15/06/14 Consumer Cyclical 2.7

Cirsa Capital 7.875% 15/07/12 Services Cyclical 2.6

Total 33.7

Total number of holdings 79

Country breakdown

%

South Africa 16.7

United Kingdom 13.3

Spain 10.8

Netherlands 8.3

Switzerland 7.0

France 6.7

Ireland 5.9

Germany 5.6

Sweden 4.1

Italy 4.0

Australia 3.0

United States 3.0

Denmark 2.6

Greece 2.4

Czech Republic 2.2

Canada 1.5

Hungary 1.1

Luxembourg 0.6

Argentina 0.2

Malta 0.1

Cash 0.9

Total 100.0

Key information

Benchmark

Fund size

Contact details

JP Morgan Euro High Yield

£0.1m

Date of launch 12 October 2006

Investment team

Fixed Income

Fund advisory company Aberdeen Asset Managers

Limited

Website www.aberdeenpensions.com

All sources (unless indicated): Aberdeen Asset Management

30 June 2009.

IMPORTANT INFORMATION ON PAGE 2 PAGE 1 of 2


OPEN ENDED FUND quarter 2 2009

Aberdeen Life

European High Yield Bond Fund

Important information

Risk factors you should consider before investing:

• Past performance is not a guide to future performance.

• The value of shares and the income from them can go down as well as up and you may get back less

than the amount invested.

• Movements in exchange rates can impact on both the level of income received and the capital value of

your investment. If the currency of your country of residence strengthens against the currency in which

the underlying investments of the Fund are made, the value of your investment will reduce and vice

versa.

• The value of a bond will fall in the event of the default or reduced credit rating of the issuer (or if credit

spreads widen, relative to gilts). Similarly, an increase in credit rating (or narrowing of credit spreads) can

lead to capital appreciation. Generally, the higher the quality of the issuer, the lower the interest rate at

which they can borrow money. Issuers of a lower quality will tend to have to pay more to borrow money

to compensate the lender (the purchaser of a bond) for the extra risk taken. Unlike income from a single

bond, the level of income from the Fund is not fixed and may fluctuate. Yields are estimated figures and

may fluctuate.

• The Fund’s exposure to a specific regional market increases potential volatility.

• Derivatives may be used to hedge against various risks as permitted by the regulations but may not be

used for speculative purposes. The use of derivatives for hedging in a rising market may restrict potential

gains.

• Underlying funds may participate in securities lending activities whereby they lend securities to third

parties in return for fees. Although such lending is fully collateralised, some risk remains in relation to

counterparty default and collateral shortfall in the event of market disruption.

Other important information:

The Fund is a unit-linked life fund issued by Aberdeen Asset Management Life and Pensions Limited.

The fund invests in other Aberdeen managed funds. The top ten holdings listed reflect those of the

underlying funds.

The value of any holding in other collective investment schemes managed by any subsidiary of Aberdeen

Asset Management PLC is excluded for the calculation of management charges.

Nothing herein constitutes investment, legal, tax or other advice and is not to be relied upon in making

an investment or other decision. No recommendation is made, positive or otherwise, regarding individual

securities mentioned.

Sector breakdown

Services Cyclical 23.6

Basic Industry 17.9

Capital Goods 14.9

Telecommunications 11.7

Consumer Cyclical 7.1

Services Non-Cyclical 7.0

Consumer Non-Cyclical 4.0

Media 3.7

Technology & Electronics 3.7

Finance & Investment 1.9

Banking 1.8

Industrial Goods & Services 1.3

Basic Resources 0.2

Sovereign 0.2

Fixed Income 0.1

Cash 0.9

Total 100.0

Additional information

Fund type

Domicile

Currency

Registered for sale

Sector

Deal closing time

Daily valuation point

Unit Linked Life Fund

UK

GBP

UK

European Fixed Income

10.00 am (UK)

12.00 noon (UK)

%

Issued and approved on behalf of Aberdeen Asset Management Life and Pensions Limited by Aberdeen Asset

Managers Limited which is authorised and regulated by the Financial Services Authority.

PAGE 2 of 2

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