PineBridge Investments Launches Asia High Yield Total Return Bond Fund

SINGAPORE, 22 June 2021, PineBridge Investments (’PineBridge’), a private, global asset manager focused on active, high-conviction investing, today announced the launch of the PineBridge Asian High Yield Total Return Bond Fund (the “Fund”). The Fund invests in non-investment-grade issues within the Asia-Pacific bond universe to capture potential yield and long-term capital growth through rigorous bond selection. The Fund is denominated predominantly in US dollars, with the aim of reducing performance volatility arising from foreign exchange movements while providing institutional and professional investors access to this diverse asset class.

Managed by Arthur Lau, Co-Head of Emerging Markets Fixed Income and Head of Asia ex Japan Fixed Income, the Fund is supported by established portfolio management, research, and trading teams based in Hong Kong. The combined team leverages a more than 20-year track record managing Asian credit strategies, including Asian high yield exposures. The award-winning teamⁱ also features a zero-default track recordⁱⁱ in Asian credit investing and currently manages over US$16 billionⁱⁱⁱ in assets across Asia ex Japan fixed income strategies.

The Fund’s investment process integrates Environmental, Social and Governance (’ESG’) screening as a central part of the credit analysis platform. This screening process includes a proprietary bond-scoring methodology based on nine factors, along with comprehensive engagement at the issuer level. PineBridge considers and promotes environmental and social characteristics by virtue of the incorporation of ESG and sustainability risk-related factors into its investment process, details of which can be found in the Integrating Sustainability Risks into Investment Decisions section of the Prospectus. The Fund is designed to align with Article 8 of the Sustainable Finance Disclosure Regulation (SFDR) as set forth by the European Union.

The incorporation of ESG screening into the Fund is integral to the firm’s goal of optimizing economic returns for a given level of risk, in order to improve and preserve the financial interests of our clients across our global investment platform. On a global level, PineBridge is a signatory of the Principles for Responsible Investment (PRI), which provides a framework for reporting and assessing ESG factors. PineBridge recently maintained its A+ rating for strategy and governance by the UN PRI^iv, demonstrating the firm’s position as a top quartile manager for our approach to ESG over recent years.

Ana Dhoraisingam, Head of Institutional and Wealth Management Sales for Southeast Asia and Head of Singapore Office, said “We are pleased to introduce the PineBridge Asia High Yield Total Return Bond Fund, the newest addition to our stable of world-class fixed income funds registered in Singapore. The Fund represents our commitment to enhance our fixed income solutions offerings not only for clients in Asia but also for global investors seeking greater exposures to the Asian bond markets. Leveraging our global investment network, the Fund answers the need for a high-conviction portfolio designed for better yields while at the same offering rigorous risk management capabilities befitting this highly dynamic market.”

“It is an exciting time to invest in Asian high yield bonds,” said Arthur Lau, Co-Head of Emerging Markets Fixed Income and Head of Asia ex-Japan Fixed Income. “In a global lower-for-longer yield environment, the asset class may offer an additional income source with relatively attractive yields and a shorter duration profile than global fixed income asset classes. In addition, with valuations of Asian high yield bonds exhibiting significant value on the back of continued improving underlying credit profiles, we believe the asset class will offer a compelling entry point for long-term investments.”

The Fund may also benefit from strong growth potential for the target assets. “Even though the high yield asset class has grown 400% in the past decade, Asian high yield bonds still represent only 24% of the Asia-Pacific bond market^v – indicating significant growth potential,” Lau said. “We are pleased to offer global investors exposure to this fast-growing and resilient asset class through a time-tested investment process that combines top-down macro views and rigorous bottom-up security selection.”

The Fund invests in short- and medium-term non-investment-grade debt securities with an average rating of BB-/BB, issued by entities based in the Asia-Pacific region.

The Fund’s reference index, the JPMorgan Asia Credit Index (JACI) Non-Investment Grade Total Return Index, consists of sovereign, quasi-sovereign, and corporate bonds across 17 geographies and 12 sectors. These securities represent a liquid and diverse set of issues representing the Asian US dollar-denominated high yield bond asset class.

The PineBridge Asian High Yield Total Return Bond Fund is domiciled in Ireland and registered for sale in the United Kingdom and Singapore.^vi

For more information on PineBridge’s range of solutions, visit www.pinebridge.com.

Disclosures:

In jurisdictions where the Fund is not registered, this material is for professional and institutional investors’ use only.

All investments involve risk, including the loss of principal amount invested. The value of the units in the Fund and the income accruing to the units, if any, may fall or rise. Investors should seek professional advice and read the prospectus, available from PineBridge and its authorised distribution partners, for further details including risk factors before investing in the Fund. The Fund may use or invest in financial derivatives for efficient portfolio management and hedging purposes. The material does not constitute an offer or solicitation to buy or sell or a recommendation for securities and does not take into account the investment objectives or needs or suitability of a specific investor. Any views represent the opinion of the manager and are subject to change. Views may be based on third-party data that has not been independently verified. We are not soliciting or recommending any action based on this material. In Singapore, this document is issued by PineBridge Investments Singapore Limited (Company Reg. No. 199602054E), licensed and regulated by the Monetary Authority of Singapore (MAS). This advertisement or publication has not been reviewed by the MAS. Investors should note that the website shown (including any contents therein) referred to in this document have not been reviewed or endorsed by the MAS.

ⁱ PineBridge has been awarded Top 8 Investment House for Asian G3 Bonds and Top 8 Investment House for Asian Local Currency Bonds in Hong Kong in The Asset Benchmark Research Awards, 2018. Portfolio manager Arthur Lau has been awarded Top 8 Most Astute Investors in Asian Local Currency Bonds and Highly Commended for Asia G3 Bonds in Hong Kong, while portfolio manager Omar Slim was Highly Commended, Most Astute Investor category, Asian G3 Bonds and Asian Local Currency Bonds in Singapore, The Asset Benchmark Research Awards, 2018. For details of methodology, please visit: https://www.theasset.com/research-project/asian-g3 and https://theasset.com/research-project/asian-local-currency. Portfolio Managers George Fong and Andy Suen were named Most Astute Investors in the Asset’s Highly Commended List for Asian G3 Bond Benchmark Review 2019 Awards. For details of methodology, please visit: https://www.theasset.com/awards/g3-2019-astute-investors. Third-party rankings and recognition from rating services or publications are no guarantee of future investment success. Working with a highly rated advisor does not ensure that a client or prospective client will experience a higher level of performance or results. Awards should not be construed as an endorsement of the advisor by any client nor are they representative of any one client’s evaluation. Generally, ratings, rankings, and recognition are based on information prepared and submitted by the advisor, and are part of a process in which not all advisors elect to participate. ⁱⁱ PineBridge, as of 31 March 2021. ⁱⁱⁱ PineBridge Investments, as of 31 March 2021. Includes local money market AUM for Hong Kong and Taiwan in this representation. ^iv Principles for Responsible Investment (PRI) ratings are based upon information reported by PRI signatories. For further details on PRI methodology, please visit https://www.unpri.org/signatories/reporting-and-assessment. PineBridge Investments has been a PRI signatory since 22 June 2015. Third-party rankings and recognition are no guarantee of future investment success. Working with a highly rated advisor does not ensure that a client or prospective client will experience a higher level of performance or results. Ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client’s evaluation. Moreover, the underlying information has not been audited by the PRI or any other party acting on its behalf. While every effort has been made to produce a fair representation of performance, no representations or warranties are made by PRI as to the accuracy of the information presented, and no responsibility or liability can be accepted for damage caused by use of or reliance on the information contained within this report. Information regarding PRI methodology and grades is sourced from PRI. PineBridge Investments makes no representations, warranties, or opinions based on PRI methodology, ratings, or other data. ^v Bloomberg, PineBridge Investments, as of 31 March 2021. ^vi Countries of registration currently include the UK and Singapore. Further countries are pending registration.

About PineBridge Investments

PineBridge Investments is a private, global asset manager focused on active, high-conviction investing. We draw on the collective power of our experts in each discipline, market, and region of the world through an open culture of collaboration designed to identify the best ideas. Our mission is to exceed clients’ expectations on every level, every day. As of 31 March 2023, the firm managed US$147.4 billion across global asset classes for sophisticated investors around the world.