KUALA LUMPUR (Feb 18): Manulife Asset Management Services Bhd is confident that its newly-launched Asia Total Return Bond Fund will be able to raise RM100 million in one to three months, as investors seek safe haven in a volatile market.
Manulife Asset Management Services head of retail wealth distribution Ng Chze How said the fund is something investors have been expressing interest in for a while now.
“We see stronger investor interest in fixed income because of the volatility in global financial markets. There is definitely demand for fixed income products,” Ng told reporters at the fund’s launch today.
He said the Asia Total Return Bond Fund is a feeder fund to the Hong Kong-based Manulife Global Fund — Asia Total Return Fund, managed by Manulife Asset Management (Hong Kong) Ltd.
According to Ng, the newly-launched Asia Total Return Bond Fund is expected to deliver a high single digit yield to investors.
Meanwhile, Jason Pang, who is fixed income client portfolio manager at Manulife Asset Management in Hong Kong, said “Asian bonds are in a sweet spot due to attractive yields, high credit ratings and the potential appreciation in Asian currencies this year.”
Other factors supporting fund inflow into Asia are the region's high growth relative to other regions, besides Asian bonds' low volatility and default rates, Pang said.