BNP Paribas Investment Partners, the asset management business of the BNP Paribas Group, has launched two Asian fixed income funds.
According to the firm, the funds are customised investment grade solutions aimed at European insurance company investors seeking higher yield in a low interest rate environment, who see credit quality and solvency capital requirements as key considerations.
BNP Paribas Investment Partners said the funds offer the opportunity for investors to participate in Asian economic and financial development via an active, fundamental approach, which it has designed to “unlock potential opportunities in the region’s fixed income markets."
Adeline Ng, head of Asian fixed income at BNP Paribas Investment Partners, said: “The growth of the Asian fixed income market has coincided with investors extending their universe in the hunt for yield within the ongoing low interest rate environment, as they have recognised its increasing credit quality, very low default rates and improved liquidity.
“All major Asian countries now have an investment grade rating from one or more of the three major rating agencies. This is a significant transition compared to 10 years ago, and the region’s fundamentals are now the strongest in the markets universe.
“With the market worth in the region of $9 trillion and now a firmly established separate asset class, Asian fixed income has evolved into a source of yield for insurance investors for whom solvency capital requirements are a key consideration.”
BNP Paribas Investment Partners has approximately $30 billion (£19.9 billion) in Asian fixed income, managed by almost 50 investment professionals.
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