- POSTED: 02 Jul 2014 20:11
Nikko Asset Management will launch Singapore's first China Onshore Bond Fund in mid-July in partnership with Bank of China and DBS Bank.
SINGAPORE: Nikko Asset Management will launch Singapore's first China Onshore Bond Fund in mid-July in partnership with Bank of China and DBS Bank.
This is seen as further supporting Singapore's role as a key offshore RMB centre.
Nikko Asset Management was awarded the Renminbi Qualified Foreign Institutional Investor (RQFII) licence by Chinese authorities in May and granted a quota of one billion renminbi to invest in China's capital markets under the programme.
Subject to regulatory approval, the new fund is designed for retail investors seeking a total return of capital growth and income through exposure to RMB and its denominated fixed income instruments.
It will invest primarily in a portfolio of RMB-denominated certificates of deposits, preferred shares, bonds, money market funds and other fixed income instruments issued onshore by the Chinese governments, quasi-government entities, corporations and financial institutions.