SHANGHAI/HONG KONG (April 27, 2022) Barings, one of the world’s leading investment managers, announced the launch of its fourth Qualified Domestic Limited Partnership (QDLP) Fund—the Barings Global High Yield Bond No.5 Private Fund (the “Fund V”) in China on April 11, 2022. Fund V is registered with the Asset Management Association of China (AMAC) to be distributed to qualified investors in Mainland China, following the three prior launches of its QDLP products since 2019.

Fund V is another addition to Barings’ global high yield strategy in the China market, which continues to invest in both fixed and floating rate high yield corporate debt instruments, primarily listed or traded on recognized markets in the U.S. and Europe. As markets evolve, Barings has successively launched several versions of QDLP funds based on the firm’s flagship global high yield bond strategy; the series includes denomination in U.S. dollar, currency hedged, as well as monthly distribution. The selection aims to accommodate the changing needs of domestic investors across various market environments.

The U.S. and European high yield markets are very well established and play an important role from a strategic asset allocation perspective among both institutions and individual investors. This sizeable asset class is actively traded, offers compelling income prospects and exhibits lower sensitivity to interest rate movements relative to most fixed income markets. Combining these attributes with a monthly distribution feature has made it a popular strategy for high-net-worth individuals.

“With relatively high yields on offer, and combined with robust corporate fundamentals, we believe there is attractive long-term relative value to be found in below investment-grade rated credits” says Martin Horne, Barings’ Head of Global Public Fixed Income. He added, “Our team has successfully managed portfolios through multiple market cycles; the current period of enhanced market volatility brings opportunities for us, as an active manager, to capitalize on market dislocations and relative value prospects in order to generate sustainable outperformance over time.”

Shelley Liu, Country Head of Barings China, said, “We are honored to collaborate with our business partner again to introduce Fund V. This enriches the product diversity available to the domestic wealth management market, and demonstrates Barings’ continuous commitment in further growing our business in China.”

 
Barings established its Shanghai-based Investment Management Wholly Foreign-Owned Enterprise (WFOE) in August 2018 and launched its first QDLP product in January 2019. In 2019, the firm was registered as a Private Fund Manager (PFM) WFOE (June), opened a Shanghai office (October) and launched the equity private fund (November) to build its local-to-local business. In 2020, Barings launched its first onshore China fixed income private fund.

Barings has been actively participating in cross-border investments in Mainland China for over a decade, including Qualified Domestic Institutional Investor (QDII), Qualified Foreign Institutional Investor (QFII), Renminbi Foreign Institutional Investor (RQFII), and Stock Connect Programs.

About Barings

Barings is a US$371+ billion* global investment manager sourcing differentiated opportunities and building long-term portfolios across public and private fixed income, real estate, and specialist equity markets. With investment professionals based in North America, Europe and Asia Pacific, the firm, a subsidiary of MassMutual, aims to serve its clients, communities and employees, and is committed to sustainable practices and responsible investment. Learn more at www.barings.com.

*As of March 31, 2022

Important Information

This document is issued by Baring Asset Management (Asia) Limited and has not been reviewed by the Securities and Futures Commission of Hong Kong. The document is not an offer or solicitation for the purchase or sale of any financial instrument or service.