According to the UK lender, the funds mainly invest in fixed income securities that provide exposure to the RMB, thus maximize total return.
The Fund is managed by HSBC Global Asset Management’s Hong-Kong based Asian Fixed Income team, headed by Cecilia Chan who has managed Asian fixed income assets at HSBC for 18 years, said HSBC.
Chan said, "The investment case for the offshore RMB bond market is compelling, given competitive yields and the long-term potential for the RMB currency to appreciate. We think that the internationalization of the RMB will continue to be an important theme for many years to come."
China passed a law in 2010, allowing intuitions to issue bonds denominated in China’s currency, which expatiated the offshore RMB bond market, called "Dim Sum bond" market. Currently, the offshore RMB bond market stood at RMB273bn ($42.9bn).
Commenting on the launch of Renminbi Fund, HSBC Global Asset Management head of sales in the Americas Christian Deseglise said the bank hoped allocations to RMB fixed income will increase substantially in future.
"The HSBC RMB Fixed Income Fund brings HSBC Global Asset Management’s experience and expertise in managing Asian fixed income to US investors in a straightforward way," Deseglise added.
The HSBC RMB Fixed Income Fund trades in A shares (HRMBX), I shares (HRMRX) and S shares (HRMSX).
