Mirae Asset, the Asian emerging markets specialist, announced a bond fund launch this morning saying that the increasing number of companies looking for finance would make the regional market deeper.
Mirae Asset Global Investments (Hong Kong) has launched the Mirae Asset Asia Bond Fund under the Ucits banner.
The firm said bond valuations in Asia were compelling compared to developed markets and that better credit quality gave investors more diversification opportunities.
Benchmarked against the JP Morgan Asia Credit Index, the fund mainly invests in short to medium duration investment grade credit, but will also buy government, supranational and high-yield names.
Jin Ha Kim, head of global fixed income at Mirae Asset Global Investments Co., will managed the fund, supported by professionals in five countries including Korea, Hong Kong and India.
Jin Ha Kim said: “We see significant opportunities for growth in Asian bonds due to a favorable macroeconomic outlook, as well as attractive yields, improving financial discipline of credit issuers and lower volatility compared to bonds of other emerging markets.”
Demand for hard currency-denominated bonds remains high due to their lower levels of volatility compared to local currency bonds, the fund manager said.
The new bond fund is a sub-fund of the Mirae Asset Global Discovery Fund, a Luxembourg-domiciled Ucits product.
In 2015, Mirae Asset Global Investment increased its sales force for its Sicav business, including a hire in London.
Fixed income funds make up U$28.8 billion (€26.4 billion) of Mirae Asset Global Investment’s total $100.5 billion of assets under management.
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