Swiss money manager GAM has unveiled an Asian fixed income strategy by adjusting its emerging markets (EM) corporate bond strategy to prioritise Asian bonds.
The move is said to be in response to the increasing opportunities in the Asian fixed income segment. According to the Swiss firm, the market increased four-folds to more than $1 trillion since 2011.
The investment approach of the Asian Income Bond strategy will be a blend of top-down macro analysis and bottom-up fundamental analysis.
The portfolio will feature 60 to 80 high conviction holdings in Asian fixed income.
The vehicle will be run by a four-member team, headed by Amy Kam. Other members include Dorthe Nielsen, Mark Pearce and Andrew Dewar.
Kam said: “Asian bonds now represent more than half of the global emerging market hard currency bond market.
“This growth stems from stable forces, namely demographic growth in China and India, as well as increased economic diversification, greater government transparency and deepening capital markets in Asia.
“These developments have created a market that is deep, liquid and scalable, and which offers investors higher average yields than those available in North America and Europe.”
Last month, GAM announced that its group assets under management (AuM) fell slightly to CHF135.7bn at the end of 30 September 2019, from CHF136.1bn at the end of June 2019.
AuM at the group’s investment management unit totalled CHF51.1bn, dropping 2% from the June 2019 figure.