Matthews Asia has expanded its fixed income offerings with the launch of the Matthews Asia Credit Opportunities Fund.
Co-Lead managed by Teresa Kong (pictured), CFA, and Satya Patel, the Matthews Asia Credit Opportunities Fund seeks total return over the long term. The fund invests primarily in USD-denominated high yield bonds of Asian issuers.
The Matthews Asia Credit Opportunities Fund was launched to provide investors with a compelling fixed income solution that aims to offer both yield enhancement and diversification. Asia has a large and liquid corporate bond market and, as a relatively under-researched asset class, it provides opportunities to potentially benefit not only from attractive levels of yield, but also capital appreciation. Q&A about the Fund provides extensive details on Asia’s credit and the Fund’s investment approach.
Teresa Kong, CFA, Lead Manager, says: “Asia credit provides a compelling investment solution—historically, it has generated higher return with similar or even lower volatility than U.S., Euro and Latin American high yield bonds. This strategy will appeal to investors seeking a lower risk profile than our equity strategies, yet are comfortable with the risks associated with sub-investment grade debt.”
Satya Patel, Lead Manager, adds: “The Asian credit market offers a rich and diverse universe of strong companies trading at an attractive yield. With our emphasis on bottom-up, fundamental analysis, we can find attractive companies with relatively low risk across a variety of countries and industries.”
Robert Horrocks, PhD, CIO, adds: “Over the course of the past two decades, investors have benefited from a dedicated allocation to Asian equities within their overall investment portfolios. Over the next decade, we believe that investors will discover the benefits of implementing dedicated allocation to Asian fixed income within their global fixed income portfolios. The attractive risk-adjusted return profile and the income-generating potential of Asian credit complement existing fixed income exposures within investors’ portfolios. We are pleased to capitalise on Matthews Asia’s equity and fixed income expertise to provide this Fund to our global clients.”
