Top Asia junk bond funds see opportunities in China developers

Hong Kong

THE best-performing emerging Asia junk bond funds this year all navigated a landmark default to profit from China's property debt. They see more opportunities as the nation prevents rising delinquencies from sparking a crisis.

Allianz Global Investors led with a 7.3 per cent return through Dec 24 this year, followed by Aviva Investors Global Services Ltd with 5.8 per cent and Value Partners Group Ltd with 5.7 per cent, going by data compiled by Bloomberg. All three held a higher proportion of notes from Chinese property firms than benchmark indices, even after Kaisa Group Holdings Ltd became the first Chinese builder to default on dollar notes in April.