Aviva Investors has launched an Asian High Yield Bond Strategy, domiciled in Luxembourg.
Aviva Investors' new fund follows demand from investors looking for higher average returns in the fixed income asset class.
The fund will invest in corporates across Asia in US Dollars and local currencies.
It will be managed by Aviva Investors' fixed income team which has assets under management of $2.8bn. This is led by Kevin Talbot and also managing the fund will be Tim Jagger, senior vice president and portfolio manager of fixed income Asia.
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Mr Talbot said: "The Asian high yield market has a very low correlation with government bonds. Historically, it has also outperformed US high-yield despite better than average credit ratings whilst outperforming Asian equities for around half the volatility.
"This suggest excellent diversification potential for fixed income investors globally. While the market is notably more sector concentrated than it US counterpart it offers access to an attractive spread of Asia's fast growing economies."
The fund will be benchmarked against the JP Morgan Asia Non Investment Grade Corporate Credit Index.
Aviva Investors is not the only firm expanding into Asia as Blackrock launched its first UK-domiciled Asian Equity fund earlier this week.

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