Eastspring, Kasikorn to jointly manage new bond fund in Thailand

24 March 2017   Category: News, Asia, Global, Thailand, United Kingdom   By Asia Asset Management

Eastspring Investments (Eastspring), the Asian asset management arm of the UK’s Prudential Plc and Thailand’s Kasikorn Asset Management (Kasikorn), are to jointly manage a new bond fund in Thailand that will invest in investment grade Asian debt.

The initial public offering period of the new Asian fixed income fund is from March 21-27, 2017.

The fund “seeks to benefit” from the “attractive yield of Asian bonds, robust economic fundamentals and favourable currency outlook of key Asian countries,” according to a joint statement from Eastspring and Kasikorn. It aims to achieve returns of 3% to 4% a year through an actively managed investment approach, with a policy to pay dividends no more than twice a year.

Eastspring managers will focus on investing in a blended portfolio of Asian ex-Thailand local currency bonds and investment grade debt, while the Thai fixed-income portion of the fund will be managed by Kasikorn.

“This new Asian fixed income fund is an interesting alternative for investors seeking to diversify their portfolios and gain attractive returns amid high-risk and highly volatile stock markets,” Vasin Vanichvoranun, executive chairman of Kasikorn, says in the statement. “Focussing on investments in high-quality investment-grade Asian bonds, rather than only domestic bonds, the fund should yield attractive returns for investors.”

Mark Yuen, head of institutional sales and client management at Eastspring adds that the fund will appeal to Thai investors looking for “stable and attractive yields from an Asian bond fund that is managed by a team of experienced managers who have a strong track record of success.”

Kasikorn, a unit of Thai lender Kasikornbank, is one of the largest managers of domestic bonds in the country, with over US$35 billion in AUM as of February 28, 2017, the statement says.

Eastspring is one of the largest managers of fixed income in the Asia Pacific region with more than $32 billion invested in the asset class out of total AUM of $146 billion as of December 31, 2016.