Premium China Funds Management is planning to launch a fixed income fund that will invest in convertible notes and corporate bonds across Asia, particularly in India and Indonesia.
"We are actually planning to roll out a Premium Asian Income Fund," Premium China Funds Management executive director Simon Wu said.
Wu said the company had done research on the market and was expecting to launch a fund later this year.
"It is actually emerging and becoming a substantial market. It is around US$100 billion and is growing at the rate of 30 to 35 per cent a year," he said.
"We are targeting double-digit return."
He said the fund would make use of the research of its sub-investment manager, Value Partners, a Hong Kong-based firm.
"The key element here is that it is not easy to play. Because you are tapping into convertible notes and corporate bonds, you have to understand those companies," he said.
"Value Partners are doing 2500 company visits a year and have a huge library of these companies and therefore we are able to do that."
The fund would be a retail product because the size of the market limits the capacity of the fund to about $500 million.
