The funds come after the company was granted an RMB 1bn ($161.3m, €150.4m, £109m) quota to invest in China’s domestic capital markets last October by the State Administration of Foreign Exchange, China’s administrative agency tasked with drafting regulations governing foreign exchange market activities.
The LionGlobal RMB Quality Bond Fund aims to achieve total return of capital growth and income over the medium to long term through investments in fixed income instruments.
The LionGlobal RMB Equity Fund aims to generate long-term capital growth by investing in A-shares listed on China’s stock exchanges.
Finally, the LionGlobal RMB Flexi Fund will aim to achieve long-term capital appreciation while moderating risk by investing into the two other new funds.
The funds will all be managed by the company’s team of Singapore-based managers.
They will be available to retail and institutional investors through OCBC Bank, Bank of China and selected fund platforms. The minimum investment amount is RMB 5000, SGD 1000, or €1000.
Gerard Lee, chief executive at Lion Global Investors, said: “With the launch of our RMB funds, Lion Global Investors is geared up to offer investors full access to mainland China’s onshore equity and fixed income markets.
“Notwithstanding that, China A-shares have been rallying over the last six months, they are still trading at a discounts to pre-global-financial-crisis levels while most other markets have matched or exceeded their pre-GFC levels.”
