ASEAN Bond

ASEAN bond mutual funds and ETFs invest the majority of their assets... ASEAN bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of the so-called ASEAN economies, which include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. This region has a total population of almost 700 million and GDP at purchasing power parity of US$5.6 trillion as of 2023. These funds can be actively or passively managed and may seek to track or outperform a particular benchmark. They may hedge foreign currency risk, or elect to leave themselves exposed to fluctuations in other nations’ currencies. Depending on their mandate, these funds may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. Singapore has the largest government debt among ASEAN economies, at over US$800 billion as of 2023. (Incidentally, it is also the only Developed Market in the group). Investors purchase these funds for capital growth and income. They also seek to reap the benefits of strong economic growth in this region of the world. These funds tend to be higher risk than developed market counterparts, simply because most ASEAN nations are emerging market economies. Last Updated: 04/16/2024 View more View less

ASEAN bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of the so-called ASEAN economies, which include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand,... ASEAN bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of the so-called ASEAN economies, which include Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. This region has a total population of almost 700 million and GDP at purchasing power parity of US$5.6 trillion as of 2023. These funds can be actively or passively managed and may seek to track or outperform a particular benchmark. They may hedge foreign currency risk, or elect to leave themselves exposed to fluctuations in other nations’ currencies. Depending on their mandate, these funds may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. Singapore has the largest government debt among ASEAN economies, at over US$800 billion as of 2023. (Incidentally, it is also the only Developed Market in the group). Investors purchase these funds for capital growth and income. They also seek to reap the benefits of strong economic growth in this region of the world. These funds tend to be higher risk than developed market counterparts, simply because most ASEAN nations are emerging market economies. Last Updated: 04/16/2024 View more View less