Bank of China (Hong Kong) (BOCHK ) Asset Management has collaborated with Citigroup Global Markets to introduce the BOCHK RMB High Yield Bond Fund which is targeted at long-term capital growth and income.
Registered in Luxembourg, the fund is BOCHK’s first Renminbi (RMB) high yield bond UCITS Fund.
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Citi and BOCHK AM will be the fund’s distributors, BOCHK AM will be the investment manager, and Citibank International’s Luxembourg division will serve as the fund’s administrator and custodian.
AU King Lun, chief executive officer of BOCHK AM, stated: "The fund launch is a major milestone for BOCHK AM. Our strategic collaboration with Citi highlights the growing importance of RMB bonds as a new asset class for investors globally."
In order to generate long-term capital growth and income, the Fund will invest mainly in debt securities denominated in RMB, hedged to this currency or which have other exposure to this currency.
This will facilitate investors looking for investment returns from the growing RMB market and RMB currency appreciation.
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By GlobalDataThe fund will also leverage the growing significance of Luxembourg as a key centre for RMB investment, with $42bn of assets held in Luxembourg-domiciled funds linked to RMB.
