The fund, which opened for subscriptions yesterday and is sub-managed by Bosera International, has a similar approach to Bosera’s flagship balanced strategy.
“Many investors believe that the global economy is slowly recovering, and Asia, particularly China, is a key source of economic growth,” said Joey Tang, director of fund marketing at Citigroup Global Markets Asia.
“However, some uncertainty remains and investors are seeking China exposure with lower volatility and higher growth potential. Income is important too, so the China Balanced Fund aims to provide a quarterly dividend.”
The portfolio allocates 40-70% of its assets to Chinese equities, with weightings ranging from zero to 30% in onshore ‘A’ shares. Hong Kong-listed ‘H’ shares and other China-related listed equities are expected to form 20-50%.
The fixed income portion can move between 30% and 60%, and is split between onshore and offshore renminbi-denominated securities, while the cash position can be a maximum of 30%.
China Balanced is available in several currency share classes, with a minimum initial investment of $1,000 (or equivalent). The fund has a 1.5% annual management fee.
Bosera International was established in Hong Kong in March 2010. Its parent company, Bosera, which is headquartered in Shenzhen, manages 25 open-ended funds, two closed-ended funds, National Social Security Fund portfolios, corporate pension funds and segregated accounts.
At the end of September, Bosera had assets under management of more than $28.2bn.
