Barings has launched its third QDLP ( qualified domestic limited partnership ) fund in China. The fund was registered with the Asset Management Association of China ( AMAC ) to be distributed to qualified investors in mainland China, following the first two launches of its QDLP products in 2019.

The third QDLP fund invests in high-yield fixed and floating rate corporate debt instruments, primarily listed or traded on recognized markets in North America and Europe.

“The compelling income-generation potential on offer, combined with the large size of the asset class and relatively low sensitivity to interest rate moves, warrants a long-term, core allocation within a broader portfolio,” says Martin Horne, Barings head of global public fixed income.

“Our team, with over a 20-year track record managing high-yield bonds, undertakes rigorous bottom-up analysis on nearly every opportunity in the market, an approach that positions the team to capture the best available relative-value investment opportunities.”

Shelley Liu, country head of Barings China, adds: “We will continue to leverage our global investment platform to provide access to diversified global investment solutions to our clients in China.”

Barings says its global high-yield platform comprises of over 90 investment professionals, with a significant presence across US and European markets, and provides the expertise required to thoroughly analyze the fundamentals of every underwritten credit.

The investment manager also notes that environmental, social and governance ( ESG ) analysis is integrated into its bottom-up credit analysis. “Not only does ESG assessment have a direct impact on our internal credit grades, but it also factors into the team’s relative value decisions,” the firm adds.

Barings has been awarded an A+ rating, the highest award, for Strategy & Governance in the annual United Nations’ Principles for Responsible Investment ( PRI ) assessment for the third year in a row since 2018.