Investing in Asian Bonds
Large investors can buy bonds directly, whereas smaller investor tend to invest via mutual funds. The two major Asian bond indices are the HSBC Asian Bond Index and the JP Morgan JACI Index.
As part of the Asian Bond Market Initiative, nine Pan Asian Bond funds have been launched. These passively managed funds are designed to provide an efficient mechanism for investors to buy local currency funds. Whilst their low fees provide funds at an attractive price, the fee scales discourage active management and provides limited incentive for managers to promote these funds. As a result these funds are not widely known.
The managers of the 8 single market funds are;
ABF China Bond Index Fund, China Asset Management Corporate Limited
ABF Hong Kong Bond Index Fund, HSBC Investments (Hong Kong) Limited
ABF Indonesia Bond Index Fund, PT Bahana TCW Investment Management
ABF Korea Bond Index Fund, Samsung Investment Trust Management Company Limited
ABF Malaysia Bond Index Fund, AmInvestment Management Sdn. Bhd.
ABF Philippines Bond Index Fund, Bank of the Philippine Islands
ABF Singapore Bond Index Fund, DBS Asset Management Limited
ABF Thailand Bond Index Fund, Kasikorn Asset Management Company Limited
Read more about this topic: Bond Markets In Asia
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