GAM has launched its Asian fixed income capability by repositioning its emerging markets corporate bond strategy to focus specifically on Asian bonds.
The GAM Asian Income Bond strategy seeks to capitalise on the opportunity set created by the growth of the Asian fixed income universe. Since 2011, the hard currency Asian bond market has quadrupled to more than $1trn. The strategy will be benchmarked against the J.P Morgan Asia Credit Index.
Amy Kam will be lead manager of the strategy alongside Dorthe Nielsen, Mark Pearce and Andrew Dewar. The four-strong team adopts a highly active approach, combining top-down macro analysis with bottom-up fundamental analysis, to create a portfolio of 60-80 high conviction holdings in Asian fixed income. Leveraging the knowledge and expertise of the wider emerging market debt and equity teams at GAM, the team invests predominantly in corporate credit with additional quasi-government or government bonds.
"Asian bonds now represent more than half of the global emerging market hard currency bond market. This growth stems from stable forces, namely demographic growth in China and India, as well as increased economic diversification, greater government transparency and deepening capital markets in Asia. These developments have created a market that is deep, liquid and scalable, and which offers investors higher average yields than those available in North America and Europe", said Kam.