Harness yields before rate hike cycle ends

Interest rates have been elevated for the past year, but have recently shown signs of softening. As inflation threats subside, interest rates and bank deposit rates will follow suit. How should investors position themselves to enjoy a stable income advantage? Considering the current market dynamic, BEA Union Investment believes that Asian Investment Grade Bonds, which offer appealing yields, healthy credit ratings, and a wide range of options, are worth considering.

Attractive yields
By incorporating Asian Investment Grade Bonds into your portfolio at this stage, you can take advantage of the current  attractive yields and also benefit from the bond appreciation opportunities when the interest rate reverse course, enhancing your long-term investment returns.
Appealing yields, relative lower default risk
Investment Grade Bonds have high credit ratings, robust fundamentals, and relatively lower default risk. Under the current market situation, the effective yield of Asian investment-grade bonds is around 5.8%1.
Wide variety of investment opportunities
The Asian Investment Grade Bond market has expanded constantly, issuing around USD58 billion in the first half of 2023, which representing 94%2 of the overall bond issuance in Asia, providing plentiful investment opportunities with appealing return possibilities.

Asian Fixed Income Investment Series - Focus on creating sustainable income

In the ever-changing economic environment, the BEA Union Investment team has professional knowledge and rich experience, coupled with flexible and proactive investment strategies, to effectively capture market opportunities in each economic and credit cycle, and to enhance asset value. Learn about our fixed income strategies that help you sail through various economic and credit cycles with sustainable income.

Highlights of Funds

Asian Strategic Bond Fund Asia Impact Bond Fund
Invest mainly in Asian Investment Grade Bonds, with flexible allocation to High Yield Bonds as strategy play, to seek stable dividend and capital appreciation opportunities.
Thematic strategy fuses with 'Green, Social and Sustainable' bonds, it leverages the advantages of quality bonds in Asia.

Investment Insights

BEA Union Investment provides forward-looking market analysis and insights for your investment decision.

Offensive-Defensive Investing
The Playbook at Rates Peak
What is the allure of Asian investment-grade bonds?

1. Source: BEA Union Investment, ICE Data Services, data as of August 31, 2023. Asian Investment Grade Bonds are represented by the Bank of America Merrill Lynch Asian Currency Investment Grade Index.
2. Source: J.P. Morgan, data as of June 30, 2023.