“With a strong on-the-ground presence and commitment to Asia, we select strong credits in the Asian bond space to add high-quality return potential to your portfolio”
- Eric Wong, Fixed Income Portfolio Manager
During previous market sell-offs, Asian bonds have shown lower drawdowns than most asset classes, shielding the fund against market turbulence.
By investing primarily in investment grade, USD-denominated bonds, the fund seeks to minimise local currency and default risks to deliver a relatively stable performance.
Carefully chosen credits deliver a portfolio that provides exposure to different sectors and countries including reform-oriented economies such as India and Indonesia.
See how the fund has performed over recent years. The chart below represents the value of HK$10,000 invested in this fund in 2013 compared with HK$10,000 invested in the Index
Asian investment grade bonds should remain supported by stable fundamentals and a continued favourable technical backdrop.
The growing market size, together with strong demand from onshore China and European institutions are likely to support the asset class.
Geopolitical uncertainties, such as tensions with North Korea and continued US political headlines, will be a source of market volatility. This should fuel technical demand for higher quality assets.
As at 30 June 2018