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Download whitepaper

Eastspring’s Global Investor Survey on Asian Fixed Income
Discern and Diversify

Asian bonds increasingly sought for
better diversification

The Asian Fixed Income market has long offered investors better risk-adjusted returns compared to developed market bonds. The growing size, maturity and diversity of the Asian fixed income market offers compelling investment opportunities for investors, especially as the region recovers from the COVID-19 pandemic.

To identify the best opportunities, a detailed understanding of the region, its nuances and characteristics is essential.

Eastspring Investments, in collaboration with Institutional Investor, developed a whitepaper which offers insights on how investors globally view Asian fixed income and their preferred strategies for this asset class.

About Eastspring

Eastspring Investments is one of the largest Asian fixed income managers with more than 25 years’ of investing experience. Managing over USD258 billion1 of assets on behalf of institutional and retail clients, of which more than USD65 billion1 are in Asian fixed income assets. Eastspring is well positioned to access the best-of-breed securities and issuances for the benefit of our clients.

Our investment professionals are based locally across 11 major Asian markets, assessing and garnering local level information and insights that underpin the team’s fundamental research process. The on-the-ground expertise puts Eastspring Investments in an ideal position to provide investors with access to the best opportunities in the Asian fixed income market.

As an organisation, we firmly believe in the value of diversity. Across the workforce, we have 29 nationalities and 56% are female which enriches our investment perspectives, thereby improving the outcomes we are able to deliver for our clients.

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Key insights

74% of all respondents are worried about inflation; other key macro concerns by regions are:

Macro concerns by regions revolve around fiscal spending, post-pandemic GDP growth, and tapering

Despite the macro concerns, they are still bullish on Asian bonds

Majority of global investors are still bullish on Asian bonds despite macro concerns

All respondents favour active bond strategies; high conviction preferred in North America and Asia

Global investors favour active bond strategies

63% of all respondents look to invest in China bonds in the next 24 months

63% of global investors picked China bonds

74% of all respondents are worried about inflation; other key macro concerns by regions are:

Macro concerns by regions revolve around fiscal spending, post-pandemic GDP growth, and tapering

Despite the macro concerns, they are still bullish on Asian bonds

Majority of global investors are still bullish on Asian bonds despite macro concerns
Majority of global investors are still bullish on Asian bonds despite macro concerns

All respondents favour active bond strategies; high conviction preferred in North America and Asia

Global investors favour active bond strategies

63% of all respondents look to invest in China bonds in the next 24 months

63% of global investors picked China bonds

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Related Insights

Financing Asia’s sustainable future
Asian High Yields – Where do we go from here?
China property: Is a soft landing in the making?
Download whitepaper

2021 Singapore House Awards

Fund Selector Asia

Best Fixed Income House, Singapore

2021 Best of Best Awards

Asia Asset Management

Best Bond Manager, Singapore

2020 Best of the Best Performance Awards

Asia Asset Management

Asian Bonds, 10 Years
 

Source

1 As at 31 December 2021
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DISCLAIMER

This document is issued by Eastspring Investments (Singapore) Limited (UEN: 199407631H). Eastspring Investments (Singapore) Limited is the appointed Singapore Representative and agent for service of process in Singapore. This advertisement has not been reviewed by the Monetary Authority of Singapore. The Fund is a sub-fund of Eastspring Investments, an open-ended investment company with variable capital (Société d’Investissement à Capital Variable or SICAV) registered in the Grand Duchy of Luxembourg, which qualifies as an Undertakings for Collective Investment in Transferable Securities (“UCITS”) under relevant EU legislation. The Management Company of the SICAV is Eastspring Investments (Luxembourg) S.A., Grand-Duchy of Luxembourg. All transactions into the Fund should be based on the Singapore Prospectus and Product Highlights Sheet (“PHS”). Such documents, together with the articles of incorporation of the SICAV and the most recent financial reports, may be obtained free of charge from Eastspring Investments (Luxembourg) S.A., or at relevant Eastspring Investments business units/website and their distribution partners. This document is solely for information and does not have any regard to the specific investment objectives, financial or tax situation and the particular needs of any specific person who may receive this document. This document is not intended as an offer, a solicitation of offer or a recommendation, to deal in shares of securities or any financial instruments. Please refer to the offering documents for details on fees and charges, dealing and redemption, product features, risk factors and seek professional advice before making any investment decision. An investment in the Fund is subject to investment risks, including the possible loss of the principal amount invested. The value of shares in the Fund and the income accruing to the shares, if any, may fall or rise. Where an investment is denominated in a currency other than the base currency of the Fund, exchange rates may have an adverse effect on the value, price or income of that investment. Investors should not make any investment decision solely based on this document. Investors may wish to seek advice from a financial adviser before purchasing shares of the Fund. In the event that an investor may choose not to seek advice from a financial adviser, the latter should consider carefully whether the Fund in question is suitable for him. Past performance and the predictions, projections, or forecasts on the economy, securities markets or the economic trends of the markets are not necessarily indicative of the future or likely performance of Eastspring Investments or any of the funds managed by Eastspring Investments. There are limitations to the use of indices as proxies for the past performance in the respective asset classes/sector. The Fund may use derivative instruments for efficient portfolio management and/or hedging purposes. Distributions are not guaranteed and may fluctuate. Past distributions are not necessarily indicative of future trends, which may be lower. Distribution payouts and its frequency are determined by the Board of Directors, and can be made out of (a) income; or (b) net capital gains; or (c) capital of the Fund or a combination of any of (a) and/or (b) and/or (c). The payment of distributions should not be confused with the Fund’s performance, rate of return or yield. Any payment of distributions by the Fund may result in an immediate decrease in the net asset value per share.

The preceding paragraph is only applicable if the Fund intends to pay dividends / distributions.
Eastspring Singapore is an ultimately wholly-owned subsidiary of Prudential plc of the United Kingdom. Eastspring Singapore and Prudential plc are not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America or with the Prudential Assurance Company, a subsidiary of M&G plc, a company incorporated in the United Kingdom.

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Disclaimer

For Institutional, Professional or Qualified Investors Only. Not for distribution to the retail public.

This document is produced by Eastspring Investments (Singapore) Limited and issued in:


The European Economic Area (for professional clients only), the UK (professional clients only) and Switzerland (for qualified investors only) by Eastspring Investments (Luxembourg) S.A., 26, Boulevard Royal, 2449 Luxembourg, Grand-Duchy of Luxembourg, registered with the Registre de Commerce et des Sociétés (Luxembourg), Register No B 173737.


The afore-mentioned entities are hereinafter collectively referred to as Eastspring Investments.


This document is solely for information purposes and does not have any regard to the specific investment objective, financial situation and/or particular needs of any specific persons who may receive this document. This document is not intended as an offer, a solicitation of offer or a recommendation, to deal in shares of securities or any financial instruments. It is a marketing communication and it may not be published, circulated, reproduced or distributed without the prior written consent of Eastspring Investments.


Investment involves risk. Past performance and the predictions, projections, or forecasts on the economy, securities markets or the economic trends of the markets are not necessarily indicative of the future or likely performance of Eastspring Investments or any of the funds managed by Eastspring Investments.


Information herein is believed to be reliable at time of publication. Where lawfully permitted, Eastspring Investments does not warrant its completeness or accuracy and is not responsible for error of facts or opinion nor shall be liable for damages arising out of any person’s reliance upon this information. Any opinion or estimate contained in this document may subject to change without notice.


Eastspring Investments (excluding JV companies) companies are ultimately wholly-owned/indirect subsidiaries/associate of Prudential plc of the United Kingdom. Eastspring Investments companies (including JV’s) and Prudential plc are not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America or with Prudential Assurance Company Limited, a subsidiary of M&G plc, a company incorporated in the United Kingdom.

Eastspring Investments (Luxembourg) S.A.
26 Boulevard Royal, L-2449 Luxembourg
Grand Duchy of Luxembourg
Tel: +352 22 99 99 57 63

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