Allianz Global Investors reopens offshore RMB debt fund
16 August 2012
News, Asia, China, Hong Kong
Allianz Global Investors said on Wednesday (August 15) that it has reopened its renminbi fixed-income fund, citing the reduced size of the portfolio, increased interest and a greater level of development in the offshore renminbi bond market as the key reasons, according to a report from Dow Jones Newswires.
The decision to reopen the fund, which invests mainly in high-grade offshore yuan (also known as CNH) bonds, follows a year of soft closure, in which Allianz Global Investors blocked subscriptions to the fund.
The decision to reopen was "largely driven by the reduced size of the portfolio and the increased liquidity in the market," Helen Lam, the fund’s Hong Kong-based lead portfolio manager, was quoted as saying. She further noted positive developments in the offshore renminbi market in terms of tradeable volume, liquidity, and daily conversion limits.
Allianz soft-closed the Luxembourg-domiciled fund in August 2011 to retain liquidity after AUM reached 450 million euros (US$555 million) in the two months following its launch in June 2011. Since then AUM has shrunk to 359 million euros as of August 13.
Meanwhile, the underlying market has developed enough to absorb larger investments.
"The CNH bond market has witnessed strong supply and demand growth year-to-date 2012, reflecting the fact that the off-shore RMB bond market has developed into a more mature stage where investors no longer aim for pure currency appreciation," Ms. Lam was quoted as saying.
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