The Dublin-domiciled fund is Ucits compliant and will be managed by Hong Kong-based Khiem Do, head of Asian multi-asset.
Barings said the fund will aim to provide investors with “Asian equity-like returns”, with “less than Asian equity volatility” over a long-term investment horizon.
Aimed at professional and institutional investors, the fund will be available throughout Asia, Europe and the Middle East.
Investing across multiple asset classes, including equities, bonds, currencies, commodities, derivatives, money market instruments, property and/or cash, the fund will have no formal limits on asset class, sectors or regions.
It does, however, have some limitations on the use of more esoteric tools, such as derivatives.
A pre-launch portfolio suggests half the fund is initially likely to be invested in bonds, of which the majority will be in Asia and the US, as well as other OECD countries.
Meanwhile, 30% may be invested in equities – two thirds in Asian equities, with the remaining portfolio invested in commodities, particularly agricultural commodities and gold, and cash.
Do said, while the fund is aiming to generate returns from the growth in Asia, Barings has decided against putting sector, asset class or geographical restraints within its mandate to ensure it has the flexibility to generate the anticipated returns.
Do also acknowledged that ongoing events in the eurozone continue to impact on global markets.
“While the world is dominated by so many macro uncertainties, it is challenging for any fund manager to try to make firm predictions – I do not think even the European politicians are able to do that,” said Do.
