London-based global asset manager M&G Investments has launched M&G ( Lux ) Asian Quality Income Fund, a new Asian fixed income strategy by the firm’s US$188.4 billion global public fixed income team.

Developed in response to sustained investor interest in high-quality Asian bond opportunities, the fund broadens M&G’s regional offering and reinforces its long-term commitment to uncovering resilient income in Asia, the firm says.

The launch also marks a further development in M&G’s strategic cooperation with Guotai Haitong Securities, with Guotai Junan Assets ( Asia ) Limited and Guotai Junan Securities ( Hong Kong ) Limited providing support on non-discretionary advisory and distribution to professional investors.

According to M&G, Asia ex-Japan contributes over 40% of global GDP but remains under-represented in global corporate bond benchmarks – highlighting a long-term opportunity for investors to tap into quality and yield as regional credit markets mature.

Within Asian credit, more than 60% of Asian investment-grade issuers are government-linked, adding another layer of resilience during periods of market stress. Against this backdrop, Asian credit markets continue to deepen and diversify, creating a broader opportunity set for income-oriented investors.

Capital growth and income

The fund seeks income opportunities across developed and emerging Asia, investing in high-quality, US dollar-denominated Asian investment-grade corporate bonds. Adopting a flexible, benchmark-unconstrained approach, the fund aims to deliver a blend of capital growth and income over a three-year horizon, with ESG integration.

Andrew Chorlton, chief investment officer of fixed income at M&G Investments, says: “In today’s uncertain climate, resilient income and diversification are vital. Asian investment-grade credit offers both, backed by strong fundamentals and supportive local demand.

“This new strategy reflects our commitment to expanding M&G’s global credit reach – especially in Asia – building on the momentum of our China corporate bond strategy. With scale, global management, and deep credit expertise, we’re ready to uncover standout opportunities across the region.”

The fund is managed by Singapore-based William Xin, who brings over two decades of experience in Asian credit markets, and is supported by M&G’s wider Asian fixed income team, which currently manages US$10.8 billion in assets across the region.

“Asian US dollar investment-grade bonds offer a rare mix of quality, yield and stability,” Xin says. “Sector diversity, limited supply, and strong sovereign ties create a resilient income stream, while healthy corporate balance sheets and deepening local demand continue to boost market liquidity.”

Guotai Junan Assets ( Asia ) Limited acts as the fund’s non-discretionary investment adviser, drawing on its China fixed income market insights, while Guotai Junan Securities ( Hong Kong ) Limited will serve as the fund’s initial distributor to professional investors in Hong Kong.