Aviva Investors, the global asset management business of Aviva, has launched the Asian High Yield Bond Strategy fund for investors seeking diversification in the fixed income asset class with higher-than-average returns.

The fund is benchmarked against the JP Morgan Asia Non-Investment Grade Corporate Credit Index and will invest in corporates across Asia in both US dollars and local currencies, the firm said in a statement.

The fund is domiciled in Luxembourg and will be managed by the chief executive of Asian fixed income and team head Kevin Talbot, as well as senior vice president and portfolio manager Tim Jagger.

The annual management charge for the fund is 1.2 per cent and the minimun investment is $2,000.

“The Asian high yield market has a very low correlation with government bonds. Historically, it has also outperformed US high-yield despite better than average credit ratings whilst outperforming Asian equities for around half the volatility. This suggests excellent diversification potential for fixed income investors globally. While the market is notably more sector concentrated than its US counterpart it offers access to an attractive spread of Asia’s fast growing economies," said Talbot.