Asia Pacific ex-Japan Bond

Asia-Pacific ex-Japan bond mutual funds and ETFs invest the majority of their... Asia-Pacific ex-Japan bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of the so-called Asia-Pacific region, other than Japan. This region (the most populous in the world) includes Australasia, Southeast Asia, and East Asia. These funds can be actively or passively managed and may seek to track or outperform a particular benchmark. They may hedge foreign currency risk, or elect to leave themselves exposed to fluctuations in other nations’ currencies. Depending on their mandate, these funds may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. At the end of 2022, total sovereign debt in the Asia-Pacific Ex-Japan region was estimated to be around US$11 trillion. Investors can purchase these funds for capital growth and income. They also may wish to avoid owning Japanese debt for a few reasons: Japan has the highest government debt to GDP ratio in the world, the Yen has been persistently weak, and growth has been slow compared to other Asia-Pacific economies. In the case of Japan’s high government debt, there is a risk the central bank may cause bondholders to lose their purchasing power by printing more money. Last Updated: 12/27/2024 View more View less

Asia-Pacific ex-Japan bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of the so-called Asia-Pacific region, other than Japan. This region (the most populous in the... Asia-Pacific ex-Japan bond mutual funds and ETFs invest the majority of their assets in government and corporate debt of the so-called Asia-Pacific region, other than Japan. This region (the most populous in the world) includes Australasia, Southeast Asia, and East Asia. These funds can be actively or passively managed and may seek to track or outperform a particular benchmark. They may hedge foreign currency risk, or elect to leave themselves exposed to fluctuations in other nations’ currencies. Depending on their mandate, these funds may focus on investment-grade bonds, high-yield (a.k.a. junk bonds), or a mix of credit quality. At the end of 2022, total sovereign debt in the Asia-Pacific Ex-Japan region was estimated to be around US$11 trillion. Investors can purchase these funds for capital growth and income. They also may wish to avoid owning Japanese debt for a few reasons: Japan has the highest government debt to GDP ratio in the world, the Yen has been persistently weak, and growth has been slow compared to other Asia-Pacific economies. In the case of Japan’s high government debt, there is a risk the central bank may cause bondholders to lose their purchasing power by printing more money. Last Updated: 12/27/2024 View more View less