KraneShares and Nikko launch Apac bond ETF

ETF blocks 1China-focused ETF specialist KraneShares has partnered with Nikko Asset Management to launch a fixed income ETF focused on the high yield bond market. The KraneShares Asia Pacific High Yield Bond ETF is an active product to be managed by Nikko Asset Management Americas. The fund will use the JP Morgan Asia credit index (JACI) non-investment grade corporate index as its benchmark and is designed to provide exposure to US dollar-denominated high yield debt securities issued by companies in Asia, excluding Japan. “We believe the Asia ex-Japan high yield bond market’s comparatively high yields, low representation in global bond indexes, and historically low default rates make it a compelling opportunity for investors,” said Jonathan Krane, chief executive of KraneShares. Asia’s bond market has seen steady growth over the last decade. The JACI which has seen its market capitalisation grow by 368%, from US$250 billion in 2010 to $1.2 trillion in 2020. © 2021 funds global asia

Executive Interviews

Executive interview: Nicolas Moreau’s orderly transition

Jul 12, 2021

Nicolas Moreau, CEO of HSBC Asset Management, is moving to Asia as the firm looks to connect more directly with the region’s growth story. ESG is also a key focus – including the ‘just’ carbon...

Executive interview: The man who made Aberdeen

Mar 04, 2021

Martin Gilbert reflects on nearly four decades as Aberdeen CEO, including what he brought to the company, his regrets at not entering into private markets earlier, and passing like ships in the...


Roundtable: How well geared are Japanese assets for a new world?

Jul 12, 2021

As we prepare to emerge from Covid, experts look at overcoming demographic issues through a combination of good tech and corporate governance, improving productivity and meeting an ambitious government carbon emissions reduction target. Chaired by Romil Patel.

Hong Kong roundtable: Increasing China’s prominence as an asset class

Mar 04, 2021

Our line-up of experts in Hong Kong considers the importance of fixed income ETFs, sustainability and the prospects of increasing China in the indices. Chaired by Romil Patel.