The investment house, which focuses on Asia, has launched a fund a few days after inking a partnership with a major Japanese financial services group.

US-headquartered Matthews Asia, which last week entered a strategic alliance with Japan’s Mizuho Financial Group, has expanded its Luxembourg-domiciled UCITS fund range with the launch of the Matthews Asia Credit Opportunities Fund.

Jointly managed by Teresa Kong and Satya Patel, the Matthews Asia Credit Opportunities Fund seeks to provide investors with a compelling fixed income investment solution that offers both yield enhancement and diversification. The fund invests primarily in dollar-denominated high yield bonds of Asian issuers. It can also invest selectively in other eligible instruments such as convertibles, local currency bonds, asset backed securities, warrants and equities, a statement from the firm said yesterday.

“Matthews Asia believes that investors need income solutions in a persistent low-yield environment and access to asset classes that diversify their fixed income exposure,” the firm continued.

Among recent developments, Mizuho Financial Group and Mizuho Bank have agreed to enter into a strategic capital and business alliance with Matthews International Capital Management.

Mizuho and Matthews Asia will collaborate with each other aiming to expand the Japanese market of investment products that focus on Asia.