Matthews Asia launches Asia credit opportunities fund

Matthews Asia boosts its Luxembourg-domiciled Ucits fund range with the launch of the Matthews Asia Credit Opportunities Fund.

The fund is co-managed by Teresa Kong (pictured) and Satya Patel. It seeks to provide investors with a fixed income investment solution targeting to offer both yield enhancement and diversification.

The Fund invests primarily in dollar-denominated high yield bonds of Asian issuers. It can also invest in other instruments such as convertibles, local currency bonds, asset backed securities, warrants and equities.

Teresa Kong, lead portfolio manager commented : “Asia credit provides a compelling investment solution—historically, it has generated higher return than US, Euro and Latin American high yield bonds with similar or lower volatility. 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.”

Jonathan Schuman, head of Global Business Development added : “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.”

Matthews Asia has $26.2bn (€23.2bn) in assets under management as of 31 August 2015.

Adrien Paredes-Vanheule
Adrien Paredes-Vanheule is French-Speaking Europe Correspondent for InvestmentEurope, covering France, Belgium, Geneva and Monaco. Prior to joining InvestmentEurope, he spent almost five years writing for various publications in Monaco, primarily as a criminal and financial court reporter. Before that, he worked for newspapers and radio stations in France, in particular in Lyon.

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