The LH Global Income Fund will invest 70% of its assets in T Rowe Price’s Global Multi-Sector Bond Strategy, according to a statement from the firm. The T Rowe fund invests at least two-thirds of its assets in debt securities issued by governments, government agencies, supra-national organisations, companies and banks globally.
The fund can also invest 20% of assets in mortgage and asset-backed securities.
“Demand for income-oriented global fixed income funds with strong track records and consistent monthly distribution is on the rise in Thailand as investors look to diversify their portfolios in search of more income,” Monrat Phadungsit, managing director at LH Fund, said in the statement.
In July alone, 35 bond funds were launched in Thailand, nearly all with a global focus, according to a Cerulli Associates report.
For the year ending July, Thailand’s total bond fund net inflows were $4.2bn, with global bond funds attracting $918.6m, according to a Cerulli Associates report. On the flipside, equity funds in Thailand are still in the red, with net outflows of around $1.1bn.
In 2016, total assets of fixed income products accounted for 54% of Thailand’s $106bn fund management industry, according to data from Morningstar Thailand.
In August, T Rowe Price received a green light from the Hong Kong’s SFC to sell four fixed income funds to retail investors. The four Sicav products are the firm’s first fixed income funds to be granted SFC authorisation.
In total, T Rowe had $204.1bn in fixed income assets under management at the end of June, according to the statement.
LH Fund Management manages 53 mutual funds, which collectively have THB 49.32bn ($1.48bn) in assets, according to the firm’s website.
The firm manages five foreign investment funds, which have THB 1.29bn in assets. Two of those funds are feeder funds, with one investing in the Amundi Funds Equity Japan Target Fund, while the other investing in the Invesco Global Leisure Fund. The remaining three products are fund of funds.