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Asset Management / Wealth Management
UBS AM launches UCITS fund denominated in CNY
The fund allows global investors direct access to the China Interbank Bond Market
The Asset 16 Mar 2018

UBS Asset Management has launched the first Luxembourg-domiciled UCITS fund which applies a base currency in the onshore renminbi (CNY): the UBS (Lux) Bond SICAV – China Fixed Income (RMB).

UBS Asset Management is the first on market with a product through which global investors can have direct access to the China Interbank Bond Market (CIBM) via a Luxembourg-domiciled UCITS fund which uses CNY as the base currency, according to UBS AM.

The fund will mainly invest in onshore CNY-denominated fixed income instruments, with Net Asset Value (NAV) calculated in onshore renminbi (CNY) instead of offshore renminbi (CNH), avoiding NAV volatility caused by discrepancies in CNY/CNH rates.

Ashley Perrott, head of pan Asia fixed income and lead portfolio manager on the fund, says: “Chinese bonds offer very attractive nominal and real yields relative to developed market yields, making the China bond market a compelling investment opportunity. This market will continue to attract investors' attention as more global indices start to include China in their benchmarks.”

Photo: Arnapoli / Wikimedia

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