2007-01-31 Hong Kong
In general, bonds can effectively disperse investment risks in a fluctuating market, in spite of their inferior returns compared with equity funds. To seek ideal returns in a fluctuating market, investors are advised to pay particular attention to Asian high-interest bonds, according to Andrew Wells, chief investment officer of Asian fixed income at Fidelity Investments. Wells believes that investors can increase the share of investment in emerging markets in their portfolios, while keeping a close eye on the quality of the investment being selected. Asian high-interest corporate bonds, for example, are expected to deliver exciting performance. In addition, Wells expects the market to benefit from the considerable deal flow, attractive prices and the aggressive acquisitions by private funds.