CIMB lured by Asian bond markets
(21 February 2013 – Malaysia) Malaysia’s CIMB-Principle Asset Management Bhd launched a close-ended bond fund that will invest in both local and foreign interests, predominantly in Asian bonds, which continue to attract foreign interest.
The CIMB-Principal Enhanced Opportunity Bond Fund aims to provide potential returns above traditional deposits such as Fixed Deposits.
At the launch event today, Munirah Khairuddin, Deputy Chief Executive of CIMB-Principal said, "Despite global uncertainties in 2012, the Asian bond markets have continued to record consistent growth."
"...The Asian bond market is expected to provide pretty decent returns and continue to attract foreign interest. While bond prices are subject to rising interest rate risks, volatility from investing in bonds is generally still much lower than equities.
"Given that, Asian bonds can offer investors consistent attractive returns compared to other developed markets due to the strong fundamentals of Asian economies and corporates in the region. Investors with a three-year investment goal will be able to benefit from these healthy growth drivers."
In Asia, fixed-income portfolio is expected to pick up as investors are looking for higher returns and defensive products with low volatility.
Demand for Asian bonds this year is expected to sustain as insurance, central banks and sovereign wealth funds shift away from lower-yielding fixed-income holdings.
"In Malaysia, 2012 was a record year for corporate bond issuance with more than RM100 billion (A$31 million) issued.
"The still-resilient domestic demand was supported by robust private consumption, investment and government spending. Singapore is also one of the most rapidly growing corporate bond markets and despite Indonesia being a smaller local currency corporate bond market in emerging East Asia, the market still grew stronger in 3Q12.
"Generally, Southeast Asia is becoming an extremely important Foreign Direct Investment (FDI) destination, with Indonesia topping the list. Overall, Asian economies have demonstrated their resilience despite the weak recovery observed in advanced economies," Munirah said.
At the launch event today, Munirah Khairuddin, Deputy Chief Executive of CIMB-Principal said, "Despite global uncertainties in 2012, the Asian bond markets have continued to record consistent growth."
"...The Asian bond market is expected to provide pretty decent returns and continue to attract foreign interest. While bond prices are subject to rising interest rate risks, volatility from investing in bonds is generally still much lower than equities.
"Given that, Asian bonds can offer investors consistent attractive returns compared to other developed markets due to the strong fundamentals of Asian economies and corporates in the region. Investors with a three-year investment goal will be able to benefit from these healthy growth drivers."
In Asia, fixed-income portfolio is expected to pick up as investors are looking for higher returns and defensive products with low volatility.
Demand for Asian bonds this year is expected to sustain as insurance, central banks and sovereign wealth funds shift away from lower-yielding fixed-income holdings.
"In Malaysia, 2012 was a record year for corporate bond issuance with more than RM100 billion (A$31 million) issued.
"The still-resilient domestic demand was supported by robust private consumption, investment and government spending. Singapore is also one of the most rapidly growing corporate bond markets and despite Indonesia being a smaller local currency corporate bond market in emerging East Asia, the market still grew stronger in 3Q12.
"Generally, Southeast Asia is becoming an extremely important Foreign Direct Investment (FDI) destination, with Indonesia topping the list. Overall, Asian economies have demonstrated their resilience despite the weak recovery observed in advanced economies," Munirah said.
Subscribe