Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Allianz re-opens offshore renminbi fund after liquidity measures

Allianz re-opens offshore renminbi fund after liquidity measures

Allianz Global Investors has re-opened its Luxembourg-domiciled Renminbi Fixed Income fund, having soft-closed it at the end of last year to preserve liquidity.

The move to soft-close the Ucits fund came after assets rocketed to €450 million only two months after it launched.

Although the fund aims to invest in high quality issuers as the market matures, it will initially hold the majority of assets in renminbi deposits through inception, with initial yields of 1%-1.5%, to maintain Ucits compliance.

The fund, managed by Helen Lam, aims to deliver a total return, including currency appreciation, of around 5% over the long-term.

Lam will invest primarily in high grade CNH bonds – CNH denoting the currency being traded offshore, mainly in Hong Kong.

Lam said: ‘We expect that high grade quality CNH bonds should be able to offer a stable return of 3 – 4% through the attractive yield component.

‘We also expect to enhance the portfolio’s total return through duration positioning to capture the policy-driven interest rate movements in mainland China.’

She added: ‘Though the recent fundamental and cyclical factors in China seem to suggest a softening RMB appreciation outlook, we believe that the pace of RMB appreciation will remain stable going forward.

‘This should be supported by China’s strong commitment to the RMB Internationalisation process through the promotion of cross-border trade and investment flows. Recent data suggests that approximate one-tenth of China’s total trade is settled in RMB, up from only 2% two years ago.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Related Fund Managers

Helen Lam
Helen Lam
4/4 in Bonds - Chinese Yuan (Performance over 3 years) Average Total Return: 8.67%
Citywire TV
Citywire TV
Citywire TV
Play Where A-rated Pattullo is finding the best bond opportunities

Where A-rated Pattullo is finding the best bond opportunities

Henderson Global Investors head of retail fixed income explains how he is managing his fund against the surprise current monetary policy divergence.

1 Comment Play Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Taxicab Tenner: Allianz Global Investors' AA-rated Simon Gergel

Our much anticpated new series is here! We hand a black cab driver a tenner and grill the manager of the 125-year Merchants trust until the meter runs out.    

Play Europe bulls, a retail boost and why a little inequality can be a good thing

Europe bulls, a retail boost and why a little inequality can be a good thing

This week’s Investment Pulse looks at whether investors should be bullish on Europe, the surprise rise in UK retail sales and if a little inequality is a good thing.

Your Business: Cover Star Club

Profile: meet the duo at the heart of Hargreave Hale's succession plan

Profile: meet the duo at the heart of Hargreave Hale's succession plan

For the first time in the company's history a non-Hargreave is now at the head of the north west broker and asset manager

Wealth Manager on Twitter