abrdn Asia-Pacific Income Fund Commentary For The Quarter Ended January 31, 2025

2025-03-28 06:10:00 ET

Summary

• The abrdn Asia-Pacific Income Fund underperformed its benchmark, with leverage and exposure to certain Asian credit sectors and Indonesian bonds detracting from performance.
• The US yield curve steepened post-Trump election, with inflationary pressures and a hawkish Fed stance impacting bond yields.
• Asian bond markets saw mixed performance, with China and South Korea benefiting from rate cuts, while Hong Kong and Indonesia underperformed.
• Optimism remains for Asia Pacific bonds despite uncertainties, with focus on high-yield segments and opportunities in long-dated bonds and improving credit quality.

Fund performance

The investment portfolio underperformed its benchmark during the period, with the overweight exposure to the HY US dollar denominated Asian credit sector and the Indonesian local-currency bond markets, alongside an underweight to the Thai local-currency market, detracting from performance. Meanwhile, the underweight to the Australian market, but with a preference to own non-sovereign bonds, added value. ¹ ...

Read the full article on Seeking Alpha

For further details see: