Fidelity Funds –
Asian High Yield Fund

“Asian High Yield has come of age as a more established asset class offering investors a strategy with high income, lower sensitivity to interest rate movements and attractive total return potential.”

- Bryan Collins, Head of Asian Fixed Income and Portfolio Manager

Reliable source of
income via Asia

Asian high yield bonds offered an average yield of 8.1%, which is higher than their counterparts in the US (6.3%) and Europe (4.9%) as of June 20181.

Diversification benefit with
sector constrained

With Fidelity's customised approach on issuer and sector allocation, the Fund manages concentration risk prudently which helps to mitigate overall volatility.

Longest track

As a pioneer in the Asian high yield market, this leading strategy has consistently outperformed other funds in its peer group2.

Market outlook and how it impacts the fund

  • We remain positive on Asian high yield market. Risk sentiment has weakened compared to the start of the year, but the strong global growth backdrop remains intact.

  • The US gradually raised interest rates, suggesting that we are further into an expansionary phase of the market cycle. The impact of rising rates on Asian high yield bonds is limited given their short duration position.

  • Concerns over a global trade war are likely to lead to continued volatility. Our base case remains that the US and China will eventually resolve their differences. Nonetheless, the recent volatility has made valuations more attractive over a medium-term horizon.

Meet Bryan Collins, Head of Asian Fixed Income and Portfolio Manager

Discover the potential of Asian fixed income
Discover the potential of Asian fixed income

With analysts on the ground, connected research insights across fixed income and equity and a focus on superior risk adjusted returns across our range of products, Fidelity can help you discover the potential of Asian fixed income.

Find out how to invest in Asian fixed income
Find out how to invest in Asian fixed income

We provide world class investment expertise to help you achieve your financial goals. Fidelity in Singapore offers its funds through banks, brokerage houses, Independent Financial Advisors (IFA) and retail e-platforms.

Source: 1Fidelity International. Figures relate to market indices and may not be reflective of actual performance of the fund. ICE BofAML Indices: Q490 (Blended Index ACCY with 20% sector Level 4 Cap and 3% issuer cap ) for Fidelity’s customized AHY approach; HQ0C for EHY; HUC0 for USHY, as of 28 June 2018. 2 Morningstar, data as of 30 September 2018. Peer group refers to Morningstar category - Fund Asian High Yield Bond. The performance information relates to FF Asian High Yield Fund A-ACC-USD share class against peer group, where it is ranked 2nd quartile over 1-year, 3-year, and 5-year periods. Past performance is not indicative of future returns.

This publication is for information and general circulation only. It does not have regard to the specific investment objectives, financial situation and particular needs of any specific person who may receive it. You should seek advice from a financial adviser before investing in the fund(s). If you choose not to seek advice from a financial adviser, you should consider whether the fund(s) in question is suitable for you. Views expressed are subject to change, and this publication cannot be construed as an advice or recommendation. This advertisement has not been reviewed by the Monetary Authority of Singapore.

FIL Investment Management (Singapore) Limited [“FIMSL”] (Co. Reg. No.: 199006300E) is the representative for the fund(s) offered in Singapore. Potential investors should read the prospectus, available from FIMSL or its distributors, before investing in the fund(s). The value of the shares of the fund(s) and the income accruing to them, if any, may fall or rise. The fund(s) may use financial derivatives, which entail specific risks as described in the prospectus. Past performance of the manager and the fund(s), and any forecasts on the economy, stock or bond market, or economic trends that are targeted by the fund(s), are not indicative of the future performance.