“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
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.
With Fidelity's customised approach on issuer and sector allocation, the Fund manages concentration risk prudently which helps to mitigate overall volatility.
As a pioneer in the Asian high yield market, this leading strategy has consistently outperformed other funds in its peer group2.
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.
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.
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.
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