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Exclusive: Value Partners to launch fixed income fund

Exclusive: Value Partners to launch fixed income fund

Value Partners is gearing up to launch a new fixed income fund –Asian Total Return Bond fund – in first half of this year.

The new fund is targeted at accredited and professional investors in Singapore, as well as retail investors in Hong Kong.

Investing primarily in a wide range of fixed income securities issued in the Asia Pacific market, the fund will invest approximately 50% in Asia high yield bonds, and about 50% in grade assets.

Value Partners said it decided to launch Asian Total Return Bond fund following the success of its flagship fixed income fund.

‘We see investors’ demand for yield appears to be intact. With the total return approach, we help our investor to capture the full potential of the Asian bond market,’ a company spokesperson told Citywire Asia.

The spokesperson said investors will continue to seek for yields and directed inflows to high yield products as interest rates were expected to stay relatively low amid a gradual rate hike cycle by the US.

Value Partners launched its first fixed income fund focusing on  Greater China high yield credit in March 2012. The Value Partners Greater China High Yield Income fund was also the first China high yield bond fund available to investors.

As of end-December 2017, the Value Partners Greater China High Yield Income fund had $4.5 billion in assets.

Just like other fixed income funds, the Asian Total Return Bond fund is managed by Value Partners' fixed income investment team. Gordon Ip, the company’s chief investment officer for fixed income, oversees the overall strategy and portfolio allocations for the fund. 

Ip said he expects the Asian high yield bond market to remain positive this year on the back of solid global fundamentals and a stable macro environment. 

Meanwhile, rising purchasing power and demand for papers from yield-seeking investors will provide further support to credits in the region. 

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