Skip to main content
About Us

The Largest Fixed Income ETF in the Region1

Launched in 2005, the ABF Pan Asia Bond Index Fund (PAIF) pioneered the Asian fixed income ETF industry. It provides an innovative, easy-to-access and cost-efficient solution to invest in a diversified portfolio of Asian local currency government and quasi-government bonds in one single trade.

10 Facts About PAIF

  1. PAIF is the first regional Asian local currency bond ETF in the region.1
  2. In 2005, PAIF was launched as part of an important initiative by Asia Pacific's 11 leading central banks and monetary authorities to strengthen the region's bond markets.
  3. PAIF is benchmarked to the Markit iBoxx ABF Pan-Asia Index.
  4. PAIF invests in the sovereign and quasi-sovereign local currency bonds of eight major Asian economies, including China, Hong Kong, Indonesia, Korea, Malaysia, Philippines, Singapore and Thailand.
  5. Domiciled in Singapore, PAIF was listed in Hong Kong in 2005 (SEHK stock code: 2821) and cross-listed in Japan in 2009 (TSE stock code: 1349).
PAIF has delivered positive returns in 14 out of the past 19 calendar years.2
7  Offering easy and low-cost access to Asia's local bond markets, PAIF allos investors to diversify their portfolios with over 500 local currency bonds in one single trade.3
PAIF's portfolio has an average credit quality of A+.3
9  The Asian sovereign and quasi-sovereign local currency bond market has grown over ten-fold since the inception of PAIF, from US$1.4 trillion to US$14.7 trillion.4
10  PAIF is a crucial part of the initiative to develop Asia's local bond markets. It started to participate in securities lending in June 2018 to deepen secondary market liquidity.

Why Invest in Asian Local Currency Bonds?

Favourable Risk-Return Profile

The macro fundamentals of many Asian governments remain robust, and they will likely continue to be a growth driver of the global economy. Investors, therefore, have an opportunity to obtain a good yield without taking on excessive risk. In fact, Asian bonds have historically demonstrated a risk-return profile that is proportional to that of US Treasuries.

Potential for Additional Yield via Local Currency Appreciation

We expect currency appreciation will continue to be an important source of potential returns moving forward. Current US-dollar strength has depressed currency gains in Asian local currency bonds, but over the medium to long term, there is a good chance of a rebound. In the meantime, US-dollar strength presents attractive entry opportunities for Asian local currency bonds.

A 'Back to Basics' Diversified Portfolio Construction Strategy

In an increasingly interconnected world, correlations between Asian local currency bonds and other major asset classes have inevitably risen. Still, they remain low enough to allow such assets to add valuable diversification benefits to investors' portfolios.

More Insights

More Information