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FIXED INCOME

Investment Philosophy

Asian bonds have developed into an important and popular asset class, however we believe the market is still under-researched. This can result in pricing inefficiencies that present skilled managers with the opportunity to identify substantial value investments. We believe that these opportunities are best captured at cyclical turning points, when bond yields or credit spreads are at their highest or widest points. In mid-cycles, excessive swings in investor sentiment may also result in short-term mispricing of securities relative to fundamentals. Comprehensive analysis of fundamental, valuation and technical factors that affect fixed income markets underpin our ability to uncover value investments and generate superior long-term returns for clients.

Process

The fixed income team adopts a four-step approach to investing.

  • Step 1

    Fair value analysis

    Macroeconomic and market research determine our investment outlook and ascertain the fair value of broad interest rate, credit and currency markets.

  • Step 2

    Strategy formulation

    During this stage, we delve deeper into the fundamental, technical and valuation factors of the interest rate, credit and currency markets. This interest rate strategy establishes the duration and yield curve positioning within a portfolio. The credit strategy determines a portfolio's allocation into credit / credit sectors, followed by "bottom-up" credit selection. The currency strategy is about taking active currency positions where valuations, fundamentals, and/or changes in price momentum support a currency direction or trend. For our single-country portfolios, value add from the currency strategy tends to be limited. When currency flexibility is permitted (particularly for multi-currency portfolios), it can be a significant source of value add.

  • Step 3

    Portfolio construction

    The team's strongest conviction become candidates for inclusion in a portfolio. Portfolios are constructed in accordance with the client's objectives, risk preferences and the team's investment views. In order to establish accountability, the lead portfolio manager assumes responsibility for final investment decisions.

  • Step 4

    Risk control and review

    Ongoing monitoring of market development and portfolio adjustments are undertaken to ensure that we capture the prevailing market opportunities.


FIXED INCOME Strategies

The fixed income team manages single country and regional Asian fixed income strategies in local and hard currencies, as well as capabilities in G7 government bond portfolios and customised fixed income solutions. The strategies are formulated on a dynamic, multi-factorial investment approach aimed towards exploiting market inefficiencies within the broad and varied Asian bond opportunity set.

The fixed income team seeks to deliver consistent, value-added investment returns through active interest rate positioning, credit selection and currency allocation. We include “top-down” and “bottom-up” analysis within our analytical framework, and make use of both quantitative and qualitative measures which have stood the test of time.

This strategy invests primarily in US dollar denominated government, quasi-government and corporate bonds across Asia. It seeks opportunities in both the investment grade and high yield sectors with an aim to maximise returns through active management of credit and US interest rate strategies.

This strategy invests primarily in US dollar denominated non-investment grade government, quasi-government and corporate bonds across Asia. Credit selection is key in this Fund as we seek to identify potential outperformers in the Asian high yield bond market, while mitigating default risks.

This strategy invests mainly in Asian local currency government bonds but also has flexibility to allocate to quasi-government and corporate bonds. The Fund seeks to maximise returns through active management of Asian interest rate, currency and credit strategies.

This is an index aware strategy that takes smaller relative positions with a narrow tracking error range, focused on large companies within the Japan equity universe. The strategy suits investors with low risk appetites.

This is an index aware strategy that takes smaller relative positions with a narrow tracking error range, focused on large companies within the Japan equity universe. The strategy suits investors with low risk appetites.

The strategy consists of only the highest conviction investment ideas sourced across the market capitalisation spectrum. As this strategy is managed in a concentrated manner, unconstrained by an index, it has the potential to experience higher volatility in the shorter term.

The strategy aims to generate long-term capital growth through investing in a concentrated portfolio of equities from global emerging markets. The investment approach is bottom up, based on relative value, and focuses on the highest conviction ideas from a wide universe.

Fixed income Team

Backed by a 20-year history of investing in Asian fixed income, Eastspring is a major asset manager in the Asian bond segment. Our fixed income expertise is guided by a highly experienced and cohesive team based in Singapore, fully dedicated to fixed income portfolio management and research.

The team’s in-depth knowledge of Asian bonds and close proximity to local markets strengthens the ability to identify and optimise value opportunities. Our Asian fixed income capabilities have garnered a number of awards over the years; a testament to the depth and stability of the investment team, and their robust performance track record.

  • Assets under management

    USD 33 billion

    (as at 31 December 2016)

  • Industry experience

    16 years

    (on average)

 

Our specialist teams include:


  • Boon Peng Ooi
    Chief Investment Officer
    Boon Peng Ooi

    Boon Peng Ooi joined Eastspring Investments, the Asian asset management business of Prudential plc, as Chief Investment Officer, in July 2007.
     
    He is responsible for overseeing the management of the firm’s Fixed Income strategies. He is also the Lead Portfolio Manager for Eastspring’s Global, Hong Kong and Japan bond portfolios.
     
    Prior to joining Eastspring Investments, Boon Peng was Chief Investment Officer and Executive Director at UOB Asset Management, Alternative Investments, where he was responsible for the business and investment management of CDOs and credit assets. Prior to joining UOB AM, he was Head of Fixed Income at Fullerton Fund Management Company. There, he oversaw the management of fixed income investments in developed and emerging bond markets. Boon Peng also spent 15 years of his career with the Monetary Authority of Singapore (MAS) where he worked in various areas of the Reserves Management Department, including seven years managing funds out of the MAS New York Office.
     
    In 2014, Boon Peng was conferred the title of “IBF Fellow” by the Institute of Banking and Finance of Singapore. This honour is aimed at recognising industry veterans who have demonstrated mastery of a profession and exemplify thought leadership and commitment to industry development. He was also named CIO of the Year in Asia Asset Management’s Best of the Best Regional Awards for 2014 and 2015.
      
    Boon Peng holds a Bachelor of Science (Building) (Hons) degree from National University of Singapore and is a CFA charterholder.

  • Wai Mei Leong
    Portfolio Manager
    Wai Mei Leong

    Wai Mei Leong joined Eastspring Investments, the Asian asset management business of Prudential plc in September 2007.
     
    Wai Mei is part of the Fixed Income team and is currently the Lead Portfolio Manager for Asian hard currency fixed income portfolios, including the Asian Bond and High Yield Bond Fund. She is also responsible for managing single-country Philippines US dollar bond strategy.

    Prior to joining Eastspring Investments, Wai Mei has worked in various capacities in relation to credit including holding positions as Senior Analyst at the Bank of Nova Scotia Asia Ltd, Commerce International Merchant Bankers (CIMB), Malaysia and ABN AMRO Bank, Singapore.
     
    Wai Mei holds a Postgraduate Diploma (Finance) from Melbourne University and Bachelor of Business (Accounting) from RMIT, Australia. She is a Certified Public Accountant.

  • Guan Yi Low
    Portfolio Manager
    Guan Yi Low

    Guan Yi Low joined Eastspring Investments (Singapore) Limited, the Asian asset management business of Prudential plc, as Portfolio Manager, in 2007.
     
    Guan Yi is part of the Fixed Income team and is currently the Lead Portfolio Manager for Pan-Asian local currency bond portfolios, as well as single-country Philippines and Thai bond portfolios.
     
    Prior to joining Eastspring Investments, Guan Yi was a Portfolio Manager at Bank Pictet et Cie Asia Ltd, where she helped to launch and manage the Asian local currency fund. Before that, she was managing Asian local currency and credit portfolios at Fullerton Fund Management Company and at Standard Chartered Bank Singapore.

    Guan Yi holds a Bachelor of Business from Nanyang Technological University, Singapore and is a CFA charterholder.

  • Wei Ming Cheong
    Portfolio Manager
    Wei Ming Cheong

    Wei Ming Cheong joined Eastspring Investments (Singapore) Limited, the Asian asset management business of Prudential plc, as Portfolio Manager, in November 2005.
     
    Wei Ming is part of the Fixed Income team and is responsible for managing Singapore and Indonesia single-country portfolios.
     
    Prior to joining Eastspring Investments, Wei Ming was a Senior Dealer in China Construction Bank. He was handling asset-liability management, foreign exchange, and helped to manage the bank’s ACU / DBU fixed income book.
     
    Wei Ming holds a Master degree in Finance from RMIT, Australia, and a Bachelor of Accountancy from Nanyang Technological University, Singapore.

  • Danny Tan
    Portfolio Manager
    Danny Tan

    Danny Tan joined Eastspring Investments (Singapore) Limited, the Asian asset management business of Prudential plc, as Portfolio Manager, in February 2004.
     
    Danny is part of the Fixed Income team and is responsible for managing credit-focussed portfolios as well as customised fixed income solutions. Before joining the Fixed Income team in 2010, Danny also worked as Portfolio Manager and Analyst with other investment teams, where he has built up extensive investment experience in a wide range of asset classes, including fixed income, structured credits and equities.

    Prior to joining Eastspring Investments, Danny worked as an Investment Analyst with Tecity Management, covering equity and fixed income research.
     
    Danny is a CFA charterholder and holds a Bachelor of Business degree in Financial Analysis (Hons) from Nanyang Technological University, Singapore.

  • Lye Thiam Wooi
    Portfolio Manager
    Lye Thiam Wooi

    Lye Thiam Wooi joined Eastspring Investments, the Asian asset management business of Prudential plc, as Head of Loans and Alternative Credit Investments, in August 2014.
     
    Thiam Wooi is part of the Fixed Income team and is responsible for managing Asian Loans and Alternative Credit Investments portfolios.
     
    Prior to joining Eastspring Investments, Thiam Wooi was a Senior Manager at NTUC Income, looking after global fixed income and asset allocation. He also held a stint previously at Eastspring Investments (previously known as Prudential Asset Management from 2005 to 2009 as an Investment Director of the Derivatives and Structured Products team. Over the years, he has established extensive working experience in fixed income, loans and credit investments, having worked in Credit Suisse, Bank of Tokyo, OUB Asset Management, Western Asset Management and Straits Lion Asset Management.
     
    Thiam Wooi holds a Masters in International Business and Economic Development from University of Reading, United Kingdom and a Bachelor of Economics from University of Guildhall, United Kingdom.

Prudential plc, incorporated and with its principal place of business in England, and its affiliated companies constitute one of the world's leading financial services groups and has been in existence for over 166 years. It provides insurance and financial services directly and through its subsidiaries and affiliates throughout the world. Prudential plc is not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America.

Eastspring Investments herein refers as Eastspring.

 

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