Aberdeen Standard Investments (ASI) has launched a Chinese bond fund with the aim of moving into a market which has relatively little foreign ownership.
The Luxembourg-domiciled Aberdeen Global – China Onshore Bond Fund will be managed by ASI’s Asian fixed income team, part of the firm’s wider emerging markets debt team.
The Ucits Sicav fund intends to capitalise on the recent opening up of China’s $10 trillion (€8.6 trillion) bond market to international investors.
Despite recent volatility in emerging markets, Chinese bonds have delivered positive returns and been one of the top performing global bond markets over the last year according to data from Bloomberg.
ASI’s global head of fixed income Craig Macdonald said: “There is already demand for Chinese bonds from global investors because of the relatively attractive yield and low correlation of the market to global peers.
“That demand will increase significantly when Chinese bonds are included in broader market indices.”
The fund will initially be registered for sale in Luxembourg and Italy, with the aim of further registration in Belgium, Denmark, France, Germany, Netherlands, Spain, and Switzerland.
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