| Asian credit has seen strong demand so far this year as investors continue to look beyond the traditional safe havens for more attractive risk-adjusted returns. Bryan Collins, portfolio manager of the FF Asian High Yield Fund, the FF Asian Bond Fund and the FF China RMB Bond Fund, shares his latest market outlook. | |
As the Asian markets continue to develop, more opportunities are becoming available for investors.
The FF China RMB Bond, FF Asian Bond and FF Asian High Yield Funds each offer unique risk/return profiles giving investors the ability to blend and tailor risks to suit their individual needs.
In light of current market conditions, investors who seek margins of relative safety should consider
higher quality investment grade corporate debt given reasonable yield levels and the predictability
that stems from good credit quality. This is an especially important consideration when investing in
burgeoning markets such as Dim Sum or offshore RMB bonds, where investors would be welladvised to seek better structural protection as market standards are still developing. For this very
reason, our China RMB Bond Fund, along with our Asian Bond Fund, maintains a core focus on
higher quality investment grade bonds. For investors with a higher risk appetite, Asian high yield
bonds still offer attractive levels of regular income, however the asset class is subject to higher
volatility from the market’s risk-on risk-off tendencies. Nevertheless, periods of higher volatility
generally prove to be attractive entry opportunities into high yield for more seasoned investors.
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