SINGAPORE (16 March 2017) – Eastspring Investments, the US$146 billion Asian investment management arm of Prudential plc, and Kasikorn Asset Management will co-manage a new Asia fixed income fund in Thailand. The IPO period for the fund is from 21 to 27 March 2017.
The new fund, the Asia Fixed Income Fund, seeks to benefit from the attractive yield of Asian bonds, robust economic fundamentals and favourable currency outlook of key Asian countries. The fund aims to achieve a target return between 3 and 4% per annum (in THB terms) to investors through an actively managed investment approach. The fund has a policy to pay dividends no more than twice a year1.
Eastspring’s team, led by award-winning fund manager Guan Yi Low2 will focus on investing in a blended portfolio of Asian (ex Thai) local currency bonds and investment grade credits, while Kasikorn Asset Management, award-winning domestic fixed income fund house3, will manage the Thai fixed income portion of the fund. Foreign currency exposures of the portfolio will be dynamically managed to generate alpha, while keeping currency volatility in check.
“This new Asia Fixed Income Fund is an interesting alternative for investors seeking to diversify their portfolios and gain attractive returns amid high-risk and highly volatile stock markets. Focusing on investments in high-quality investment-grade Asian bonds, rather than only domestic bonds, the fund should yield attractive returns for investors4. According to data from 1 January 2016 to 31 January 2017, Asian Local Bonds, mainly comprising bonds with an A+ rating, offered an annual yield of 3.7%5. This return outclassed that of Thai corporate bonds, comprising debt instruments with an average rating of BBB and higher, which yielded 2.7% per annum6 ,” said Mr Vasin Vanichvoranun, Executive Chairman, Kasikorn Asset Management.
“With Asian bonds, investors can reap considerable benefits from attractive yields and expanding opportunities in this dynamic fixed income market,” said Mr Boon Peng Ooi, Chief Investment Officer (Fixed Income), Eastspring Investments.
“We are pleased to be partnering with Kasikorn Asset Management, one of the leading asset management companies in Thailand. This fund will appeal to Thai investors looking for stable and attractive yields from an Asian bond fund that is managed by a team of experienced managers who have a strong track record of success,” said Mr Mark Yuen, Head of Institutional Sales and Client Management, Eastspring Investments.
Kasikorn Asset Management is one of the largest managers of domestic market bonds, with strong performance and more than US$35 billion in assets under management (as of 28 February 2017).
Eastspring is one of the largest managers of fixed income in the region with more than US$32 billion invested in this asset class, out of a total of US$146 billion in assets under management (as of 31 December 2016). The Asia Fixed Income team comprises of 14 investment professionals who have an average of 15 years of experience.
1 Rate of return not guaranteed. No guarantee that the investment strategy can be fully implemented or that the desired results can be fully achieved.
2 Citywire Asia Awards 2016: Best Fund Manager (Bonds – Asia Pacific Local Currency) base on risk-adjusted returns at a sector level over three years to 31 December 2015.; The Asset Benchmark Research Awards 2016: Most Astute Investor in Asian Local Currency Bonds, Singapore, Highly commended. Nominated in terms of knowledge of the credits/markets, acumen in making investment decisions and/or trading skills. All verified nominations of investors are weighted and ranked accordingly.
3 Morningstar Awards 2017: Best Fund House (Domestic Fixed-Income) recognise those fund families that have delivered sustained outperformance on a risk-adjusted basis across their fund line-ups as of 31 December 2016.; The Asset Benchmark Research Awards 2016: Top Investment House in Asian Local Currency Bonds, Thailand, base on the number of votes won by their Astute Investors. All votes are also subject to a weighting methodology.
4 Past performance is not necessarily indicative of the future or likely performance.
5 Represented by the Markit iBoxx Asian Local Bond Index, Source: Eastspring Investments as of 31 January 2017.
6 Represented by TBMA Corporate Bond Index, Source: Thai Bond Market Association (TBMA) as of 31 January 2017.
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About Eastspring Investments:
Eastspring Investments, part of Prudential Corporation Asia, is Prudential's asset management business in Asia. With operations in 10 Asian markets as well as offices in North America and Europe), we have almost 2,500 employees and US$146 billion in assets under management (as of 31 December 2016).
We were named Asia’s leading retail fund manager for 2016 in an annual survey by Asia Asset Management. The annual survey ranks participating fund managers in Asia, ex Japan, Australia and New Zealand, based on assets sourced in the region as of June 30, 2016.
For more information on Eastspring Investments, please visit: www.eastspring.com
About Kasikorn Asset Management:
KASIKORN ASSET MANAGEMENT CO., LTD. (KAsset), one of KBank’s subsidiaries, was granted a license to operate a mutual fund management business by the Ministry of Finance on March 18, 1992. Presently, the company comprehensively manages funds including mutual funds, private funds and provident funds. As of February 28, 2017, the company’s assets under management (AUM) stood at 1.24 trillion Baht, maintaining the number-one position in mutual fund business, with net asset value of more than 980 billion Baht, representing 20.8 percent of the market total.
To learn more, please call the KAsset Contact Center at 02-673-3888, or visit www.kasikornasset.com