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VAM launches Asia fixed income fund

bonds/chief-executive/

18 August 2009
| By Corrina Jack |

VAM Funds’ new Asia Fixed Income Fund has been created to enable investors to benefit from average returns of over 6 per cent in the Asian fixed income market.

Returns on investment grade corporate bonds are averaging more than 6 per cent, according to a VAM statement.

The fund will be operated by Hong Kong-based Enhanced Investment Products (EIP), which VAM says has over seven years of consecutive positive returns in Asia.

The VAM Asia Fund will hold a portfolio of 20 to 50 names from around 650 bonds.

“Asian Fixed Income is a growing market and, given the present need for yielding assets, this fund offers a solution to investors who are looking for low volatility with a medium return,” EIP chief executive Toby Bland said.

“Asian investment grade corporate bonds offer value for investors because of their relatively wide spreads over US Treasuries and low risk of default, and are likely to deliver more stable future returns,” Bland said.

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