PineBridge Investments has launched the PineBridge Asian High Yield Total Return Bond Fund.
The fund will invest in short- and medium-term non-investment-grade bond with an average rating of BB-/BB, issued by entities based in the Asia-Pacific region.
The fund is managed by Arthur Lau, co-head of emerging markets fixed income and head of Asia ex-Japan fixed income, backed by a team that manages more than US$16 billion in fixed income assets across Asia ex-Japan.
According to Lau, it is now an “exciting” time to invest in such asset classes. “In a global lower-for-longer yield environment, the asset class may offer an additional income source with relatively attractive yields and a shorter duration profile than global fixed income asset classes,” he says.
“In addition, with valuations of Asian high yield bonds exhibiting significant value on the back of continued improving underlying credit profiles, we believe the asset class will offer a compelling entry point for long-term investments,” adds Lau.
He points out that while high yield bonds have gained popularity over the past decade, with seen by the 400% growth, it still accounts for less than a quarter, or 24% of the Asia-Pacific bond market. As such, there’s significant growth potential, adds Lau.
See also: Second half rebound in Asia EM fixed income assets seen, says PineBridge
In line with growing popularity of ESG trends, such considerations will be a central part of the credit analysis platform.
According to PineBridge, the screening process includes a proprietary bond-scoring methodology based on nine factors, along with comprehensive engagement at the issuer level.
“The fund represents our commitment to enhance our fixed income solutions offerings not only for clients in Asia but also for global investors seeking greater exposures to the Asian bond markets,” says Ana Dhoraisingam, PineBridge’s head of institutional and wealth management sales for Southeast Asia and head of Singapore office.
“Leveraging our global investment network, the fund answers the need for a high-conviction portfolio designed for better yields while at the same offering rigorous risk management capabilities befitting this highly dynamic market,” he adds.
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