Posted inSoutheast Asia

Asset Plus launches China bond fund

The Thailand fund of funds will invest in UBS and Axa products.
Wat Arun and cruise ship in night ,Bangkok city ,Thailand

Asset Plus Fund Management has launched the ASP-China Bond Fund, which will invest in a mixture of offshore Chinese US-denominated fixed income securities and domestic China renminbi-denominated bonds.

“Amid global market volatility, investment in China fixed income is one of the best opportunities out there,” said Khomsan Phalanusondhi, executive director & chief marketing and product officer at Asset Plus.

One of its advantages is its low-correlation to the global bond index. Although regulations in some industrial sectors in China have impacted investments, the China bond market continues to grow. As such, now is a good opportunity for portfolio diversifiers to navigate through this challenging period,” he added.

The ASP-China Bond Fund allocation comprises three elements: a majority allocation of 50% to mostly onshore bonds in the UBS China Fixed Income Fund; 25% to the UBS China High Yield Bond Fund to generate higher returns, and 25% to the Axa WF China Sustainable Short Duration Bonds Fund to reduce risks from price volatility, with an emphasis on short-term green bonds.

The initial public offering period runs from 1 March to 10 March, and investors can subscribe with a minimum of THB 1,000 ($31).

The fund incorporates two investment options, according to Asset Plus. The ASP China Bond-R allows auto redemption a maximum of 12 times a year, and the ASP China Bond – A is a closed fund with return opportunities gained from continuous investment until the investors sell the fund. Individual investors are eligible for tax-free redemptions on their investments.

“This is a good access point for long-term investors who can ignore the current volatility,” said Nattapon Chansivanon, executive director & chief investment officer at Asset Plus.

Part of the Mark Allen Group.