Aberdeen MM Sterling Bond: Qual. Rating Issued

We think investors in Aberdeen Multi-Manager Sterling Bond are let down by very high fees.

Jackie Beard, FSI, 17 June, 2010 | 7:43PM
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We have published a new Morningstar Qualitative Rating and Research Report for Aberdeen Multi-Manager Sterling Bond.

"At 2.24%, the TER on this fund is over 130 basis points higher than the Morningstar Sterling Corporate Bond category median. In our view, this is a big negative--expenses are extremely important in bond funds as returns on these funds are constrained. We accept that the category contains primarily direct bond funds, and a fund of funds is typically more expensive than a direct fund. However, we think that investors could achieve an equally well diversified bond portfolio at a much lower cost by holding a direct bond fund..."

The full four-page PDF report can be accessed here. It is free to users of morningstar.co.uk.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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