Manulife has unveiled a new mandatory provident fund, the Manulife MPF RMB Bond Fund, under the Manulife Global Select (MPF) Scheme to boost its MPF fund platform to cover the existing retirement investment spectrum.
The new fund is designed for MPF members who hold a longer-term investment view, aim to seek competitive overall rate of returns through capital appreciation and income generation.
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The new fund will target increased customers’ interest in renminbi-related investments, especially dim sum bonds.
The fund, which charges an annual fee of 1.15% per annum of net asset value of this fund, will invest in renminbi-denominated debt securities issued, traded or distributed by governments, banks, corporations, outside Mainland China.
Luzia Hung, CEO, Manulife Provident Funds Trust Company, said: "As the second largest MPF service provider in Hong Kong, Manulife is committed to providing choices to our MPF members who have diverse investment appetites. With the addition of this fund, our platform now has the most comprehensive MPF bond fund options, ranging from single market to regional and international."
Ronald KT Chan, managing director and senior portfolio manager, fixed income, Manulife Asset Management (Asia) said: "Offshore renminbi bonds appear relatively attractive based on average current yield of 3.53% and the potential for continued currency appreciation. The offshore renminbi has appreciated 2.5% against the US dollar year-to-date in 2013 and we expect it to remain on an upward trend, appreciating 1% to 2% per annum in the long term.
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By GlobalData"We are generally positive on the offshore renminbi bond market, which has expanded by almost 40% so far in 2013 to be worth about US$84 billion," added Chan.
