Security selection will be chosen by the Hong Kong-based Generali Investments Asia thereby combining local knowledge with its fixed income expertise.
The investment universe of government and corporate bonds includes those denominated in eight local currencies: South Korea, Singapore, Indonesia, Malaysia, the Philippines, Thailand, China and Hong Kong. For China, read those renminbi-denominated securities traded on stock exchanges outside China or Hong Kong.
The Sicav’s manager is Hong Xie, head of fixed income at Generali Investments Asia, who will aim for a return of 1% above the HSBC Local Bond Index ex Japan, China Onshore, India, and Taiwan. She joined the firm in 2011 from her position as fixed income portfolio manager at China Investment Corporation.
The advantages of investing in the region’s bonds, she commented, are: “The Asian bond market benefits from the region’s solid fundamentals – such as low levels of public debt relative to GDP – attractive growth perspectives and investment flows from abroad fuelled by the significant increase in liquidity stocks in the more advanced economies.”