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BOCHK and Citi launch Renminbi high yield bond UCITS fund


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Bank of China (Hong Kong) Asset Management (BOCHK AM) and Citigroup Global Markets have jointly launched the BOCHK RMB High Yield Bond Fund.

This is BOCHK’s first Renminbi (RMB) high yield bond UCITS fund registered in Luxembourg.
 
The fund aims to generate long-term capital growth and income by investing mainly in debt securities which are either denominated in RMB, hedged to this currency or have other exposure to this currency, giving investors the potential for investment returns from RMB fixed income investments and RMB currency appreciation.
 
BOCHK AM is one of the largest active RMB fund managers globally, with discretionary and advisory mandates of USD 7.7 billion.
 
Citi and BOCHK AM will act as the fund’s distributors, while BOCHK AM will take the role of investment manager and Citibank International plc (Luxembourg Branch) is the fund’s administrator and custodian.
 
The fund provides a highly liquid solution for those investors looking to deploy capital into the growing RMB markets and seeking participation in the ongoing internationalisation of the currency. The fund also builds on the growing importance of Luxembourg as a key investment centre for RMB, with RMB262 billion5 (USD42 billion) of assets held in Luxembourg-domiciled funds linked to RMB.
 
AU King Lun, chief executive officer of BOCHK AM, says: “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.”
 
“Citi is delighted to work with BOCHK AM to facilitate global investors in accessing a world-class solution to gain exposure to the RMB fixed income marketplace. BOCHK AM’s insights, delivered via the UCITS format with associated benefits and safeguards, represents a timely and exciting investment proposal for a wide range of global investors,” says Eric Personne, EMEA head of Citi’s multi-asset group.

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