Allianz Global Investors, the German investment firm, is tapping the expanding Asian bond market with the launch of a new product that allows a flexible allocation of assets.
The Allianz Flexi Asia Bond requires a minimum subscription of $5,000 or HK$50,000 and will be benchmarked against the HSBC Asian Local Bond Index. Assets may be allocated across sovereign debt, investment grade credits, convertibles and high-yield bonds. It also offers two currency-hedged share classes in the Australian and Canadian dollar, in addition to Hong Kong and US share classes.
"The new fund can be flexibly adjusted according to business cycle and market conditions. The flexible allocation of up to 100 per cent in goverment bonds and up to 70 per cent in high-yield enables us to capitalise on specific market themes, while mitigating downside risk," said David Tan, head of investments for Allianz Global Investors Singapore and chief investment officer for pan-regional Asian bond mandates.
International investors have developed an appetite for the Asian bond market, which through the last five years has more than doubled in size to $6.5 trillion, the firm said. The interest in Asian investments all the more strengthened with European markets down. In Hong Kong, gross sales of bond funds grew 44.3 per cent to $16.6 billion in 2011.
Investors interested in the new fund can participate in the initial public offering schedule for 4 June to 3 July 2012.