The bond fund launch comes after Threadneedle recently announced its plans to roll out a series of Asia-managed funds with an aim to establish Singapore as its first investment hub outside of the UK and US.
Threadneedle (Lux) Developed Asia Growth and Income Fund launched on 22 April was the maiden fund to be managed from Asia. The fund house today said it has launched the Threadneedle (Lux) Flexible Asian Bond fund on 30 April.
As the name suggests, the fund manager seeks to adopt a flexible investment approach in line with the different market conditions.
The scheme will follow an unconstrained bond strategy, investing across the Asian fixed income markets in both hard and local currency government bonds, high grade and high yield corporate bonds as well as global sukuk bonds.
The fund will be managed by Threadneedle’s Asian fixed income team of five that is being headed by Clifford Lau, head of fixed income, Asia Pacific.
On the investment avenues, Lau said, “the Asian credit market remains fundamentally resilient. Within Asian hard currency bonds, we see declining volatility and spread valuations are still attractive compared to other global hard currency bonds. Within the local currency bond markets, we are focusing on high yielding markets where we see potential for economic improvement.”
Headquartered in UK, Threadneedle established its presence in Asia in 2008 and has offices in Singapore, Hong Kong, Taiwan, Malaysia and Australia.
Threadneedle manages assets worth $149.5bn as of 31 March and is owned by Ameriprise Financial, a leading US diversified financial services company with $783bn in assets under management and administration.
