Cover -- CONTENTS -- LIST OF CHARTS, TABLES, AND BOXES -- FOREWORD -- ABBREVIATIONS -- I. INTRODUCTION -- A. Expanding the Investor Base -- B. Major Findings -- C. Report Organization -- II. ASEAN LOCAL CURRENCY BOND MARKETS-CURRENT STATE -- A. Bond Market Development -- B. Government Bond Markets -- C. Corporate Bond Market -- D. The Investor Base -- E. Addressing Remaining Impediments -- III. DOMESTIC INSTITUTIONAL INVESTORS -- A. Institutional Investors: Who are They? -- B. The Portfolio Construction Process -- C. Domestic Institutional Investors in Local Currency Bonds -- D. Regulation -- E. Recommendations -- IV. FOREIGN INSTITUTIONAL INVESTORS -- A. Overview of Foreign Institutional Investors -- B. Foreign Institutional Investors and Emerging Market Debt -- C. Foreign Institutional Investors and Regional Asian Bond Mandates -- D. Recommendations -- E. Foreign Institutional Investment in Asian Local Currency Debt -- F. Recommendations -- G. Capital Controls -- H. Chapter Summary -- V. INDIVIDUAL INVESTORS, DOMESTIC MUTUAL FUNDS, AND EXCHANGE-TRADED FUNDS -- A. Individual Investors -- B. Mutual Funds and Exchange-Traded Funds -- VI. SUMMARY OF RECOMMENDATIONS -- A. Preconditions -- B. Addressing Remaining Impediments to Bond Market Development -- C. Indirect Measures to Increase Investor Base -- D. Expanding the Domestic Investor Base -- E. Foreign Institutional Investors -- F. Individual Investors, Mutual Funds and Exchange-Traded Funds -- APPENDIX -- BOND MARKET INDICES -- REFERENCES -- Charts -- Chart 1 Local Currency Bonds Outstanding (%, Global Total) -- Chart 2 Local Currency Bonds Outstanding ( billion) -- Chart 3 Corporate Bonds and Contractual Savings -- Chart 4 Largest Corporate Bond Issuers -- Chart 5 Government Bond Bid-Ask Spread -- Chart 6 Domestic Investors in Local Currency Bonds -- Tables.

Table 1 Outstanding Government Securities, Total and By Tenor -- Table 2 Liquidity Indicators in Selected Government Bond Markets -- Table 3 National Pension Plans in Selected ASEAN+2 Countries -- Table 4 Sovereign Wealth Funds Located in ASEAN+2 Countries, 2010 -- Table 5 Investor Profile of Local Currency Bonds, December 2011 -- Table 6 Share of Total Assets Invested in Local Currency Bonds -- Table 7 Global Assets Under Management by Institutional Investors -- Table 8 Pension Plan Asset Allocation by Asset Class -- Table 9 Regional Allocation of Bond Portfolios for Pension Plans -- Table 10 Foreign Holdings in Local Currency Bonds for Selected Countries, December 2011 -- Table 11 Regional Holdings of Total Debt Securities, 2010 -- Table 12 Regional Holdings of Total Debt Securities, 2011 -- Table 13 Major Country Holdings of Total Debt Securities, 2011 -- Table 14 Barriers to Foreign Investors -- Table 15 Foreign Investor Major Concerns by Country -- Table 16 Open-ended Mutual Funds vs. Exchange-Traded Funds -- Table 17 Worldwide Total Net Assets of Mutual Funds, 2011 -- Table 18 Mutual Fund Assets by Country, 2010 -- Table 19 Share of Local Currency Bonds Held by Mutual Funds, 2011 -- Table 20 Exchange-Traded Funds by Country, December 2011 -- Table 21 Asian Bond Fund Country Bond Index Funds, 31 July 2012 -- Boxes -- Box 1 Benefits of Local Currency Bond Markets -- Box 2 Asian Bond Fund Pan-Asia Bond Index Fund.