Asia High Yield

Presented by

Bryan Collins

About this talk

The Asian High Yield market has experienced some volatility over the past few months as idiosyncratic events have emerged, more specifically among some of the Chinese property developers. Given recent market movements, partly exacerbated by seasonally lower bond market liquidity and partly due to fundamentals, we have seen value re-emerge within the Asian High Yield corporate market. Please join Bryan as he presents an update on the market, the outlook and the Fund’s positioning. Asian High Yield remains an attractive investment proposition for long term investors: •Asian High Yield bond prices have partly recovered from weakness in January and late 2014 but remain below par on average, providing some capital upside potential not seen for some time. •Income continues to be relatively stable and continues to be noticeably higher than many other credit markets, courtesy of Asia’s credit spread (or yield) risk premium. Although it is important to note that as companies continue to refinance their debt at lower interest rates, income may continue to trend lower compared to previous years but this is of course not unique to Asia and is in line with global bond markets. •The Fund’s investment approach, which applies a unique issuer and sector constrained risk management framework, has proved again to be the best way to manage concentration risks within Asia, and the Fund remains committed to providing a well-diversified Asian High Yield corporate portfolio with a high level of regular income. •The Asian High Yield Fund is comfortably positioned with high conviction credits and a meaningful underweight to fundamentally weaker and distressed credits.

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