Cash & Liquidity ManagementInvestment & FundingCapital MarketsCiti Partners on Renminbi High Yield Bond

Citi Partners on Renminbi High Yield Bond

Bank of China (Hong Kong) Asset Management (BOCHK AM) and Citigroup Global Markets Limited have jointly launched the BOCHK RMB High Yield Bond Fund1, BOCHK’s first renminbi (RMB) high yield bond Undertakings for the Collective Investment of Transferable Securities (UCITS) Fund registered in Luxembourg.

The Fund aims to generate long-term capital growth and income by investing mainly in debt securities which are either denominated in RMB, hedged to the currency or have other exposure to this currency, giving investors the potential for investment returns from RMB fixed income investments and RMB currency appreciation.

The launch follows BOCHK AM’s first RMB high yield bond fund3 in August 2011. Citi’s Markets and Securities Services business has collaborated with BOCHK AM to launch the new UCITS Fund. Citi and BOCHK AM will act as the Fund’s distributors, while BOCHK AM will take the role of investment manager, and Citibank International plc (Luxembourg Branch) is the Fund’s administrator and custodian.

Dr AU King Lun, chief executive officer (CEO) of BOCHK AM, said: “The Fund launch is a major milestone for BOCHK AM. Our strategic collaboration with Citi highlights the growing importance of RMB bonds as a new asset class for investors globally.”

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