Asian Fixed Income

First State Investments’ Asian fixed income capability is designed to provide relevant, high quality solutions for Asia focused investors within appropriate risk tolerances. Our offering extends to 15 Asian countries across three asset classes, namely credit, interest rates and currency. Operating across Hong Kong, Singapore and Jakarta, our team comprises of highly experienced investment professionals focused on fixed income in this region.

Investment Philosophy and Approach

The team’s investment philosophy is based on a ‘balanced risk’ approach. By ensuring that portfolios are built in a balanced and diversified manner – where one particular view does not dominate – we increase the likelihood of accomplishing portfolio and client objectives. The process is based on a fundamental five factor analysis for each of the 15 countries in the region. The factors that influence and ultimately drive returns are the macro-economic outlook, valuations for rates, credit and currency markets, and sentiment in those markets, political outlook and technical assessment. These factors help formulate an outlook within each country for each asset class that forms the basis of our strategies. These strategies are implemented with a medium-term time horizon with a focus on risk return profiles, high quality credit analysis and appropriate risk management.

Team Profile

Our Asian Fixed Income team is one of the most experienced team in the region. The team, managed by Jamie Grant, is comprised of eight highly-experienced investment professionals based in Hong Kong, Singapore and Indonesia. Jamie has more than 20 years' industry experience, specialising in corporate credit. 

8
16
yrs
6
yrs

Stewardship And ESG Integration

The Asian Fixed Income Team considers ESG factors relative to their potential impact on financial performance. We believe that ESG issues have a significant bearing on risk. In addition to being incorporated into our Credit Research process (which supports our entire global fixed income and credit business, with ESG assessment of corporate securities), ESG factors are incorporated into our assessment of the drivers of alpha source prices.

Because ESG risk assessment is incorporated into our idea generation stage, all client portfolios benefit from our consideration of these factors. Given product design is carried out independently from idea generation, clients have the option to further shape their portfolios using ESG factors. These options include negative or positive ESG screens. We can work with clients to incorporate other ESG ideas into their product designs, based on their individual views and requirements.

Investment Information And Performance

Performance  

% of the team’s portfolios outperforming their relevant benchmark over three years * 12.84%
Weighted average of outperformance* 
(Three years annualised. Weighted by size of fund)
-0.26%
Absolute return over three years (to 31/12/2016)
First State Asian Quality Bond Fund**
4.84%

 

Performance and investment characteristics are as at 31/12/2016
Performance is quoted pre-fees and in $A terms. Investors in other currencies will be subject to exchange rate fluctuations which will affect investment returns.
Past performance is not indicative of future performance.

Source: First State Investments
*Includes all funds and segregated accounts managed by any entity within Colonial First State Global Asset Management. Not all funds and accounts are registered or available in all jurisdictions. This may not be representative of your jurisdiction.
**This Fund has been selected as representative of the strategy but this may differ across the other funds and accounts within the same strategy.
Please follow this link for information on how our RI and Stewardship Measures are calculated. 

Investment characteristics 

Credit rating breakdown - Asian Quality Bond Fund

Source: Calculated by BRS Aladdin using data from Moody’s, S&P and CFSGAM

Sector breakdown - Asian Quality Bond Fund

Country breakdown - Asian Quality Bond Fund

Source: First State Investments

Please follow this link for information on how our RI and Stewardship Measures are calculated.