Asian Short Duration Bond

Why Asian Fixed Income?

Asia stands firm as a strong engine of global growth

  • Fundamentally, we believe Asia will maintain its position as the pre-eminent growth engine of the world

  • We feel the region offers an attractive opportunity, providing investors with:

    • Growth, in the world of very sluggish recovery

    • Yields, in the world of low interest rates

    • A safety-net of conventional policy supports, in the world of increasing non-traditional stimulus

A rapidly growing bond market in Asia

  • We have seen spectacular growth of the Asian Bond Market (ex–Japan) in both local and foreign currency markets. This growth has led to a more attractive asset class for investors

  • The local currency universe has seen 330% growth from US$2.3 trillion to US$10 trillion over the last 10 years

  • Over the same time period, the hard currency universe has experienced 280% growth from US$246 billion to US$933 billion

Quality of Asian credit 

  • Asian credit enjoys higher ratings, lower defaults and wider credit spreads

  • Historical risk / return vs US and Emerging Markets

  • Over a five year period, Asian Credit has offered better returns to US and EM credits, both in the IG and HY space

  • The volatility of the Asian credit market has been subdued during this period, for both the IG and HY markets

  • Consequently, Asian Credit has produced better risk-adjusted returns over the last five years

 

 

 

Why Asian Short Duration Bonds?

Short duration bonds are a way for investors to mitigate market volatility and rising interest rates. AXA Investment Managers’ short duration range seeks exposure to attractive growth markets while maintaining a compelling riskreturn profile.

Here are three key reasons why you should consider Asian Short Duration bonds with us:

Exposure to fast growing and dynamic Asian credit markets.

The Asian credit market is large, diverse and has many highly rated issuers. We believe that the region has shown further positive and improving credit trends over the last decade.

 

Stable income opportunity

Our short duration focus captures a significant part of the overall Asian credit market yield and return through active credit selection, while benefiting during market downturns from the lower volatility of
shorter maturity bonds.

 

Experienced, local insight.

Our experienced, Asian-based team uses a disciplined, total return approach that blends fundamental
and technical analysis to capture the most attractive opportunities throughout market cycles.

 

 

 

Who is it for?


Investors who are: 

Seeking yield without taking too much volatility

Seeking to reduce interest rate risk

Considering portfolio diversification

 

 

Why AXA Investment Managers?

  • We have an experienced investment team with a local presence.
  • Our team uses a comprehensive investment approach which blends fundamental and technical analysis.
  • We have over a decade of experience in managing short duration strategies globally.

 

13
Years average experience of local Asian credit expertise*

 

17
Years’ experience managing short duration strategies globally*

 

130
Fixed Income investment professionals working across every major market*

 

11
Short duration strategies across different markets*

 

* as of Sep 2019.