Winners rationale

While relatively unfamiliar with Europe’s fixed income market, Asia’s HNWIs continue to seek yield through European sub-investments and use the region’s bond space to diversify beyond Asian investments.

Fidelity International’s best-in-breed European bond offering, with a total US$14.7 billion in AUM, spans the continent and covers a range of investment grade portfolios, which include short-dated aggregate strategies, traditional aggregate strategies, and corporate bonds. Over the past year alone, net inflows from Asian investors into Fidelity International’s European bonds have tripled.

Notably, Fidelity International’s European High Yield strategy — launched in 2000 in response to the steady growth of Europe’s subordinated debt market — has burgeoned into one of the largest funds with one of the longest track records in this space.

Over and above offering a broad product range, Fidelity International ventures to extract alpha for investors through meticulous credit selection, pinpointing securities that provide catalysts for spread tightening and price appreciation — such catalysts include ratings upgrades, deleveraging events, and tender offers.

Due to the risks associated with the high yield space, the firm pays particular attention to credit, duration, and liquidity risks, thereby providing investors with attractive risk-adjusted returns. The asset manager also proactively adjusts risk levels according to market conditions.

Recognising Fidelity International’s commitment to granting Asia’s private banking clients access to the full breadth of its investment capabilities, the industry’s gatekeepers saw fit to crown Fidelity International Asian Private Banker’s 2019 Best Fund Provider – Europe Bond.