Aberdeen Investments and China Construction Bank ( Asia ) have partnered to offer Aberdeen’s abrdn SICAV I - Short Dated Enhanced Income Fund in Hong Kong through CCB ( Asia ), which enables the bank’s clients to access a fully global universe of high-quality credit investments, helping them enhance portfolio yield and income compared with cash.

The partnership comes at an opportune time, the companies note, as the US$714 million fund marks its third anniversary in July 2026. Recent geopolitical events have once again reminded investors that markets have the potential to be volatile.

The paradox is how to balance these risks while gaining exposure to what are, in a historical context, attractive fixed income yields - only made more attractive following recent market movements.

Short-dated credit can offer a solution, providing an attractive level of yield over cash and government bonds, with the ability to lock into still attractive yields with lower volatility than longer duration bonds.

With an average credit rating of A-, the fund aims to achieve a combination of income and growth, while also aiming to provide ample liquidity and avoid loss of capital, by investing in high-quality bonds with a maturity typically of up to three years.

Having a monthly payout of around 5.25% per annum and share classes available in HKD, CNH and USD, the fund aims to achieve a yield in excess of cash and the Bloomberg Global Corporate Aggregate 1-3 Year Index ( USD Hedged ) over rolling three-year periods ( before charges ).

The fund’s strategy is further supported by its global research platform, which sources the best ideas from developed and emerging market corporate bond markets.

Short-dated credit has historically shown resilience delivering 28 separate calendar years of positive returns out of the past 29 years. This track record of stability, attributed to its lower sensitivity to interest rate fluctuations, positions short-dated credit as a consistent investment, especially in uncertain market conditions.

“With global central banks balancing persistent inflation risks – heightened by recent market developments – against softer growth signals, investors are reassessing where to find stable income streams without taking excessive risk,” says Tina Tong, the asset manager’s head of wholesale distribution in Hong Kong. “While yields for bonds with longer maturities may remain elevated given ongoing fiscal pressures, shorter duration debt reduces exposure to interest rate movements and is well positioned to navigate what is likely to be an evolving and uneven rate environment.” 

Annie Chen, the bank’s deputy chief executive, adds: “With rising global economic uncertainty and an unclear interest rates trajectory, investors may increasingly look for alternatives to switch from cash deposits and money market funds to achieve higher yields. The fund could be a good option for investors who seek to enhance yield while maintaining access to liquidity.”