HSBC launches Renminbi fixed income fund

HSBC Global Asset Management has launched the HSBC GIF RMB Fixed Income fund which enables investors to gain access to Chinese fixed income opportunities. The fund, registered for sale across Europe, forms part of HSBC Global Asset Management's Luxembourg-based Global Investment Funds (GIF) SICAV.

The fund is to be managed by the Hong Kong-based Asian fixed income team, which is headed up by Cecilia Chan who has managed Asian fixed income assets at HSBC for the last 17 years. This team already manages a total of US$24bn in Asian fixed income. The minimum investment level for the new fund is US$5,000.

The fund will focus on offshore RMB denominated instruments including RMB denominated bonds and RMB deposits. Chan confirms that the fund is structured so that asset allocation will vary over time as opportunities develop in the market and as the regulatory environment evolves. Given that the RMB market is characterised by shorter duration instruments, the average duration of the fund is likely to be in the one to three year range. There will be diversified credit exposure, and the investment approach will combine “a rigorous top down approach with bottom up fundamental analysis.” The investment team adds that as many RMB issues are non-rated, all issues will be subject to its own rigorous screening process.

Andy Clark, Head of Wholesale, at HSBC Global Asset Management, said, "The HSBC GIF RMB Fixed Income fund is an early entrant within the UCITS structure. The fund brings the expertise of HSBC's vast capability in Asian fixed income to European investors in a straightforward format."

www.assetmanagement.hsbc.com