Aviva Investors has launched the Asian High Yield Bond Strategy fund to target corporate debt within Asia, in both hard and local currencies.
The fund will target both institutional and retail investors – with the latter facing a minimum investment of $2,000 and an annual management charge of 1.2 per cent.
Domiciled in Luxembourg, the fund will be managed by Aviva Investors Asia fixed income team head and chief executive Kevin Talbot and senior vice president and portfolio manager Tim Jagger.
Talbot says: “The Asian high yield market has a very low correlation with government bonds. Historically, it has also outperformed US high yield despite better than average credit ratings whilst outperforming Asian equities for around half the volatility.
“This suggests excellent diversification potential for fixed income investors globally. While the market is notably more sector concentrated than its US counterpart it offers access to an attractive spread of Asia’s fast growing economies.”
The fund will be benchmarked against the JP Morgan Asia Non Investment Grade Corporate Credit Index.