State Street Global Advisers, or SSgA, was selected to manage the ABF Pan Asia Bond Index Fund, or PAIF, which was initiated by 11 Asian and Pacific central banks and monetary authorities.
Modeled on cost-effective and efficient exchange-traded funds, PAIF brings the opportunity to enhance development of the bond and capital markets in the Asia-Pacific region, says Vincent Duhamel, chief executive of SSgA Asia, based in Hong Kong.
The fund will invest in domestic currency sovereign and quasi-sovereign bonds from China, Hong Kong, Indonesia, South Korea, Malaysia, the Philippines, Singapore and Thailand.
With its modest cost and planned accessibility to a large group of investors, this fund can help to broaden and deepen the regions investor base, Duhamel says.
International Index developed the index on which the fund is based. The Asian Bond Fund initiative was begun in 2002, when members agreed to pool $1 billion of reserves to invest in bonds of Asian issuers.