The Schroder ISF RMB Fixed Income Fund, which launched on 7 November, is managed by the asset manager’s Asian fixed income team. The team is led by Rajeev De Mello, head of Asian fixed income, and Angus Hui, Asian fixed income fund manager.
The portfolio will use the HSBC Offshore RMB Investment Grade Bond Total Return Index as a reference. It can own Chinese government bonds and debt issued in renminbi by Chinese and foreign companies.
De Mello commented: “In the current low interest rate environment, offshore RMB bonds provide an attractive yield of 4% for the overall index and 3.6% for the investment grade non-government sector.
“With now higher yields and a wider investment universe to add value from security selection and relative value rotation, offshore RMB bonds provide investors with multiple sources of return potential in addition to the currency appreciation.”
The new fund is registered under the Luxembourg-domiciled Schroder International Selection Fund.
Karl Dasher, global head of fixed income at Schroders, said: “After the success of the Hong Kong-based offshore RMB bond fund, launched in 2010, and the continued growth and development within the offshore RMB bond market, we are keen to extend this product offering to a broader range of clients via our Luxembourg platform.”
