Germany’s Universal-Investment and the UK’s Stratton Street have launched Stratton Street UCITS Renminbi Bond Fund UI.
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The launch follows the pre-existing £194 million Renminbi Bond fund managed by Stratton Street since 2007 and has a total return of 88% since inception.
The new fund is benchmarked against the HSBC China Offshore Renminbi Bond Index and is denominated in euro.
Though the Luxembourg-domiciled Ucits fund has institutional share class, it also has a retail share class as the firm seeks to allow more investors to buy into this strategy.
This investment process of the fund will focus on investing in the high growth creditor nations of Asia, including China, with enough overseas assets to pay back their foreign debts and they are borrowing to invest in their long term growth.
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By GlobalDataThe fund will allow investors to benefit from the expected renminbi appreciation and the anticipated opening of China’s capital market.
Andrew Seaman, fund manager for the Stratton Street UCITS Renminbi Bond Fund UI, said: "Index based bond funds buy more from the most indebted. We buy from creditors, who can sustain their debts and pay us back."
