Matthews Asia has launched a new strategic income fund that invests primarily in bonds and other debt securities of Asian corporate and sovereign issuers in both local and external currencies.
The Luxembourg-domiciled Matthews Asia Strategic Income, which is managed by Teresa Kong, and co-managed by Gerald Hwang and Satya Patel, is a Ucits version of a fund which has been ran in the US for nearly three years and Kong also runs.
Investing across capital structures and currencies, the portfolio takes an active, bottom-up approach and is based on the manager’s assessment of creditworthiness, interest rate cycle and the potential for currency appreciation.
Kong says: “Investors’ fixed income portfolios tend to be underinvested in Asia since widely used global debt benchmarks generally allocate to the most indebted countries as opposed to the most creditworthy.
“Dedicated Asian fixed income allocations enable investors to potentially create a more diversified exposure across interest rate, credit and currency while enhancing the overall risk-return profile of a fixed income portfolio.”