Asian Bond Fund 2. The second phase of the Asian Bond Fund initiative launched in December 2004. ABF2 invests in local currency bonds issued by sovereign and quasi-sovereign issuers in the eight of the EMEAP markets (PRC; Hong Kong, China; Indonesia; Korea; Malaysia; Philippines; Singapore; and Thailand). ABF2 consists of two components, a Pan-Asian Bond Index Fund (PAIF) and a Fund of Bond Funds (FoBF). PAIF is a single bond fund index investing in sovereign and quasi-sovereign local currency bonds issued in eight EMEAP economies. FoBF is a two-tiered structure with a parent fund investing in eight Single-market Funds, each of which will invest in local currency sovereign and quasi-sovereign bonds issued in their respective markets.