Global indices fail to reflect Asian bond growth, says Legg Mason

Growth in Asian bond markets has been vastly under-represented in global indices, according to Legg ...

Growth in Asian bond markets has been vastly under-represented in global indices, according to Legg Mason affiliate Western Asset Management. Rajeev De Mello, portfolio manager for Asian Opportunities fund said the indices are failing to keep pace with the changing shape of this asset class. He explained how the Asian local currency bonds in which he invests have grown to represent the fourth-largest domestic bond market in the world. The market value of these bonds (excluding Japan) has increased by 40% between 2003 and 2008, compared to an increase of 25% for global local currencies...