Best Fund Provider – Asia Bond
Continuing its consistent annual performance, since the ‘taper tantrum’ of 2013, Asia was the world’s best performing fixed income market last year, with the J.P. Morgan Asia Credit Index delivering 5.8% return, in dollar terms.
Notwithstanding tight spreads at the start of the year and investor concerns on market liquidity, net inflows into emerging Asian fixed income were positive every month of the year.
The strong capital inflows, particularly into local currency bonds, coupled with a period of strength in Asian currencies, proved a fruitful year for investors in Asian credit.
For sophisticated private banking clients seeking strategies that expose them to Asian credit, BlackRock’s suite of Asian fixed income strategies – that stretches across a range of investment styles and credit spectrum – proved it to be the house of choice.
The strong performance reflects the continued strength of the brand’s diversified business model, which seeks to cater to investor demands for both active and index style strategies across the credit spectrum.
In Asia, BlackRock takes the view that regional fixed income markets are still developing and have exploitable inefficiencies.
Through its Singapore-based active fixed income team, the BlackRock seeks to identify mispriced securities by using fundamental research – a process which pairs top-down macroeconomic analysis, bottom-up credit selection, along with quantitative analysis for fair value assessments, portfolio construction and risk management.
BlackRock credits this blend of investment philosophy as the source of the team’s substantial risk-adjusted returns over the years.
With its detailed benchmark knowledge, efficient trading, and performance analysis, the investment manager has been the go-to house for clients seeking well-constructed passive strategies.
Further, the brand is also a known pioneer in synthetic beta solutions, supporting more nuanced client demands and innovation for alpha and beta separation.
For its robust spectrum of active and passive products, BlackRock is Asian Private Banker’s Best Fund Provider – Asia Bond of 2018.
“Our commitment to investment excellence is anchored in our firm’s culture. Our Asian credit strategy has a long track record and has performed well in the long term, both relative to our peers and to the market. We believe Asia and Asian credit continue to be very well-placed. Ageing demographics, a global savings glut, and the need for income remain the key long-term themes and will continue to support Asian credit. Credit differentiation across sectors and issuers provides the opportunity for active managers to generate alpha for our investors in the years to come.”