Matthews Asia Strategic Income Fund, the new product, invests primarily in bonds and other debt securities of Asian corporate and sovereign issuers in both local and hard currencies, the company said in a statement. Operating under Matthews Asia Funds, the fund is designed to seek total return over the long term with an emphasis on income.

"Foreign investors have increasingly gained access to Asian bonds. This increase has come as more overseas investors seek to reallocate assets into emerging countries in a quest for higher returns and diversification, away from the potentially diminishing purchasing power of the US dollar," said Robert Horrocks, chief investment officer at Matthews. 

Apart from the structural reforms that have steadily upgraded Asia's sovereign credit ratings and amid downgrades in several developed Western countries, Asia's bond markets are gaining attention due to improvements in liquidity, transparency and diversification, the firm noted.

The Matthews Asia Strategic Income Fund is intended as a lower volatility product. Both investor and institutional class shares are available for this fund. 

Matthews oversaw $15.7 billion in assets under management as of 30 November.