Asian bond market investors face challenging times, but interest rates, credit selection, and local currencies create opportunities for alpha, according to Manulife Asset Management.
Following the shock exit of its regional head, the fund house outlines plans to build A-share research, boost Asian bond coverage, seek a WFOE licence in Shanghai and open an office in Singapore.
In a video interview, Jim Veneau, head of fixed income for Asia at Axa Investment Managers, outlines his expectations for regional bonds and the possibility of a Bond Connect scheme.
The firm will soon roll out a Dublin-domiciled Asian fixed income product. It also expects more Japanese money to flow offshore and sees Philippine bonds as particularly attractive now.
Asian fixed income has hit record levels of foreign ownership, but stickier offshore investors should preclude a 1997-style crash, says Western Asset's Lian Chia-Liang.
The fund house aims to capitalise on Japanese pension plans' growing interest in new investment types, including Asian fixed income and certain alternatives.