The fables of fixed income | Financial Adviser - Aberdeen Asset Management
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March 10, 2017

The fables of fixed income

According to Apollonius of Tyana, a 1st century philosopher, the fable writer Aesop “made use of humble incidents to teach great truths.” Following in this tradition we hope that the following videos – illustrated by John Devolle – can help anyone to separate fixed income fact from fixed income fiction and encourage them to explore the wonderful and diverse world of bonds.

Video 1: The Seven Dwarfs

A tale of diversity.

Fables of fixed income 1 diversity

The moral

Remember that strength can be found in variety.
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Video 2: The Emperor’s New Clothes

A lesson in independence.

Fables of fixed income: Independence

The moral

Question the herd mentality and think for yourself.
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Video 3: Sinbad the Sailor

A voyage of discovery.

Fables of fixed income: Discovery

The moral

Broaden your horizons and keep an open mind.
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Video 4: The Dog and his Reflection

A story of caution.

Fables of fixed income: Caution

The moral

Avoiding mistakes is just as important as picking winners.
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Video 5: Dick Whittington

A story of perseverance.

Fables of fixed income: Caution

The moral

Don’t rely on others to do all the work for you.
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Video 6: The Tree and the Reeds

A lesson in flexibility.

Fables of fixed income: Flexibility

The moral

In the face of uncertainty, be prepared to adapt.
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The value of investments and the income from them can go down as well as up and you may get back less than the amount invested.

Investing globally can bring additional returns and diversify risk. However, currency exchange rate fluctuations may have a positive or negative impact on the value of your client's investments.
Bonds are affected by changes in interest rates, inflation and any decline in creditworthiness of the bond issuer. Bonds that produce a higher level of income usually also carry greater risk as such bond issuers may not be able to pay the bond income as promised or could fail to repay the capital amount used to purchase the bond. Where a bond market has a low number of buyers and/or a high number of sellers, it may be harder to sell particular bonds at an anticipated price and/or in a timely manner.

Contact details

Should you require any further information, please visit aberdeen-asset.com for details of your local Aberdeen representative.

Important information

The above marketing document is strictly for information purposes only and should not be considered as an offer, investment recommendation, or solicitation, to deal in any of the investments or funds mentioned herein and does not constitute investment research as defined under EU Directive 2003/125/EC. Aberdeen Asset Managers Limited (“Aberdeen”) does not warrant the accuracy, adequacy or completeness of the information and materials contained in this document and expressly disclaims liability for errors or omissions in such information and materials.

Any research or analysis used in the preparation of this document has been procured by Aberdeen for its own use and may have been acted on for its own purpose. The results thus obtained are made available only coincidentally and the information is not guaranteed as to its accuracy. Some of the information in this document may contain projections or other forward looking statements regarding future events or future financial performance of countries, markets or companies. These statements are only predictions and actual events or results may differ materially. The reader must make their own assessment of the relevance, accuracy and adequacy of the information contained in this document and make such independent investigations, as they may consider necessary or appropriate for the purpose of such assessment. Any opinion or estimate contained in this document is made on a general basis and is not to be relied on by the reader as advice. Neither Aberdeen nor any of its employees, associated group companies or agents have given any consideration to nor have they or any of them made any investigation of the investment objectives, financial situation or particular need of the reader, any specific person or group of persons. Accordingly, no warranty whatsoever is given and no liability whatsoever is accepted for any loss arising whether directly or indirectly as a result of the reader, any person or group of persons acting on any information, opinion or estimate contained in this document. Aberdeen reserves the right to make changes and corrections to any information in this document at any time, without notice.

Issued by Aberdeen Asset Managers Limited which is authorised and regulated by the Financial Conduct Authority in the United Kingdom.

Risk warning:

Risk warning

The value of investments and the income from them can go down as well as up and your clients may get back less than the amount invested.

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