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Malaysia’s RHB targets 100 million ringgit for new China bond fund by year end

By Asia Asset Management  
Jul 2, 2019

Malaysia’s RHB Group Asset Management hopes to draw 100 million ringgit (US$24.2 million) of investments by the end of the year into its new China bond fund.

The RHB China Bond Fund, which was launched on May 15, feeds into the BlackRock Global Funds – China Bond Fund.

“Through this fund, investors will be able to tap on the opportunities and potential of the China market, capitalising on China’s growth as one of the fastest growing economies in Asia. We target to achieve a subscription of funds of approximately 100 million ringgit by the end of 2019,” Eliza Ong, managing director, chief executive officer and regional head of RHB Group Asset Management, says in a statement on June 27.

According to Ms. Ong, the partnership with BlackRock demonstrates the Malaysian company’s “commitment to expand investors’ access to other markets and various asset classes”.

The RHB China Bond Fund has five currency classes: ringgit and ringgit-hedged, RMB, US dollar-hedged, and Australian dollar-hedged.

The Malaysian firm says the fund aims to invest at least 95% of its net asset value in the BlackRock target fund, which primarily invests in RMB-denominated bonds and non-RMB denominated securities issued by “entities exercising the predominant part of their economic activity in China”. Its investments include non-investment grade debt in China’s onshore and offshore bond markets.

Kuala Lumpur-based RHB Group Asset Management had 49.2 billion ringgit of assets under management as at May 31, 2019.