News

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

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