Asian Bond Fund
Asian Bond Funds (ABF) were initiated to promote greater regional financial integration particularly in the bond market and to eventually help financing private sector investment in Asia. The initial step involved pooling US$ 1 billion of their foreign reserves to form the ABF1 to purchase a basket of U.S. dollar-dominated bonds issued by eight EMEAP economies (China, Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore, and Thailand).Since inception in July 2003, the BISIP Series ABF1 has registered a total return of 14.39% versus 13.77% for the JACI sovereign and quasi-sovereign index. The performance of a comparable constant duration US treasury benchmark was 8.93%. Net of fees the ABF1 returned 13.71%. The total size of the ABF1 as of 31 January 2007 was USD 1,165,494,157.
In December 2004, the ABF2 was launched comprising a Pan-Asian Bond Index Fund (which is now named as ABF Pan-Asian Bond Index Fund/ PAIF) and eight Single-market Funds. The PAIF is a single bond fund investing in sovereign and quasi-sovereign local currency-denominated bonds issued in the eight EMEAP markets. The eight Single-market Funds will each invest in sovereign and quasi-sovereign local currency-denominated bonds issued in the respective EMEAP markets.
posted by JD @ 2:02 PM
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