The RMB Income Plus Portfolio is an Ucits compliant bond fund that will invest in both renminbi bonds issued outside China and other Asian bonds excluding Japan.
AllianceBernstein is expected to invest at least half of the fund in investment grade securities and use hedging strategies to ensure the currency exposure of the fund is almost entirely with the renminbi.
The Luxembourg domiciled fund will be managed by Briscoe, director of Asia Pacific fixed income at AllianceBernstein.
Briscoe said since 2005, the renminbi has no longer been pegged to the US dollar. Despite the government’s continuing control of the exchange rate, the currency has appreciated by about 20% in the intervening period. With China’s growth rate this year expected to be about 9% – well over double that of the world as a whole – AllianceBernstein thinks there is scope for the renminbi to strengthen further.
