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    risks.

    The following risks may be materially relevant but may not always be adequately captured by the summary risk indicator and may cause additional loss: Credit risk, Liquidity risk and Emerging market risk.

    glossary.

    Asia Investment Grade

    Aiming to generate alpha in investment-grade Asian credit

     

    Asian credit denominated in USD hard currency is now a sizeable opportunity for global investors. Allocations to Asian investment grade (IG) are rising thanks to its attractive diversification qualities based on higher yields, shorter duration and different underlying exposures compared to the global credit market.

    $1 trillion

    Size of Asian IG credit market

    A-average rating

    Average quality is higher for Asian IG credit than comparable markets1

    Article 8

    SFDR fund classification

    1 Source: Bloomberg indices, JP Morgan indices, Lombard Odier. As at March 2022.

    diversity and depth
    diversity and depth·dynamic search for value·our strategy·philosophy·investment team ·performance and data·insights

    diversity and depth.

    The Asian investment-grade credit market offers diversity and depth across a broad range of countries and sectors with ample trading liquidity. The wider Asia-Pacific universe includes high-quality large-cap companies from Japan and Australia. Over the past decade:

    • The median deal size has increased from USD 30 million in 2011 to USD 500 mn
    • Approximately 71% of deals issued in the Asia-Pacific USD-denominated market were greater than USD 500 mn in size
    • Large jumbo issuers have also entered the market, with issue sizes more than USD 3 billion
    • Large, non-benchmark IG issuances have been tapped in the infrastructure and commodity sectors

    Source: LOIM; Bloomberg, 31 May 2023. For illustrative purposes only.

    1 Source: Moody’s, JP Morgan, October 2018. There can be no assurance that the Sub-Fund’s investment objective will be achieved or that there will be a return on capital or that a substantial loss will not be incurred.

    dynamic search for value.

    Asian economies have the ingredients for an attractive credit outlook: economic growth, improving fiscal balances and sustainable debt levels.

    The Asia Investment Grade strategy is built on three pillars.

    For illustrative purposes only. 

    our strategy.

    The Asia Investment Grade strategy focuses on Asia-Pacific issuers in hard currency. The team employs a high-conviction approach, seeking to generate both income and capital gains by investing in what the team considers to be the best opportunities in the region.

    The benchmark-aware, unconstrained investment process is managed dynamically across the debt capital structure (senior, subordinated) and debt classes (sovereigns, corporates, financials). The strategy only actively invests in investment grade securities, and to provide greater flexibility and opportunity, it has 30% allowable limits for non-Asian issuers.

    With a focus on fundamentals, the team carefully assesses the quality and risks of each investment while considering the top-down positioning and overall portfolio risk limits.

    philosophy.

    We believe a high-conviction, active-management approach is best suited to the Asian credit markets where inefficiencies and dispersions can be ample over time, and where risks and opportunities are fluid. We select investments and build diversified portfolios based on a value-bias which, we believe, will allow us to capture long-term outperformance on our long-only total return strategies. Our relentless, value-oriented, fundamental top-down and bottom-up research further generates long-term advantages. We are benchmark-aware but not benchmark-driven.

    investment team.

    strong, stable and local investment team.

    LOcom_AuthorsAM-Dhiraj.png
    Dhiraj Bajaj
    Portfolio Manager & Head of Fixed Income Asia
    LOcom_AuthorsAM-Sunil.png
    Nivedita Sunil 
    Portfolio Manager

     

    LOcom-AuthorsAM-Poh.png
    Poh Xiongwei
    Senior Credit Research Analyst

    LOcom_AuthorsAM-Kwan.png
    Kenneth Kwan
    Senior Credit Research Analyst

    LOcom_AuthorsAM-Sanghvi.png
    Janvi Sanghvi
    Credit Research Analyst 

    LOcom_AuthorsAM-Liew.png
    Benedict Liew
    Fixed Income Product Specialist

    The strategy is managed by an experienced team with diverse backgrounds whose track record goes back more than a decade.

    With a belief in being ‘local’ in Asia, the team is situated in both Hong Kong and Singapore, the latter growing as a leading global hub for Asia and global emerging market issuer meetings, including deal and non-deal roadshows.

    The local investment teams have deep knowledge of the Asian credit markets, as well as a strong network within the traditional fixed income community, ratings agencies and bank syndicates.

    Find out more about our Asia Investment Grade fund, including share classes.

    more information

    insights.

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    important information.

    This document is a Corporate Communication and is intended for Professional Investors only. This document is a Corporate Communication for Professional Investors only and is not a marketing communication related to a fund, an investment product or investment services in your country. This document is not intended to provide investment, tax, accounting, professional or legal advice. This document is issued by Lombard Odier Asset Management (Europe) Limited (hereinafter the “Company”).

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