Schroder Investment Management (Hong Kong) has reopened the Schroder Asia Asset Income Fund and introduced a renminbi-hedged share class for the multi asset fund in an effort to increase assets.

The RMB-hedged share class for the Hong Kong-domiciled income fund was introduced on 1 November, following approval from Hong Kong’s Securities and Futures Commission.

Schroder Asian Asset Income Fund, which is managed by Richard Coghlan, head of multi asset, Hong Kong, targets to provide income and capital growth over the medium to longer term by investing primarily in Asian equities and Asian fixed income securities.

The fund will invest 30%-70% in Asian high-yield bonds or Asian high-dividend equities, 0-30% in cash and 0-10% in other assets such as commodities and real estate securities.

The share class will focus at investors who have existing RMB-based investments and are seeking for a diversified source of income in China’s currency.

The firm is currently on a fundraising move with retail and institutional investors with its distribution partners in Asia Pacific.

Garth Taljard, product manager, multi-asset, Schroders Hong Kong, said: "The Schroder Asia Asset Income Fund has improved capacity over recent months, and we believe that the fund manager will now be able to accept subscriptions and still manage the fund effectively, without jeopardizing the interests of existing unit holders.

"In addition, stock prices in the Asian yield universe have retreated from previously stretched levels earlier in the year, and we believe they now offer a more attractive entry point.

In view of the continued growth of renminbi deposits in Hong Kong, we are introducing a renminbi-hedged share class for the fund to provide an additional investment channel for renminbi holders," Taljard added.