China Asset Management, Hong Kong (ChinaAMC) will introduce a new fixed income fund by October, Citywire Asia can confirm.
The new short-term bond fund will invest in fixed income and debt instruments issued or guaranteed by supranational bodies, governments, government agencies, local authorities and companies in any sector.
It is targeted at clients with liquidity management requirements, particularly those with spare cash looking for low risk products that them higher returns than bank deposits.
Available in different share classes, the new fund is expected to have a target yield of around 3.5% per annum. It will be managed by its Hong Kong-based six-member fixed income team.
China AMC said it aims to get the new fund on the shelves of private banks by mid-2019.
In the pipeline
Seperately, the firm is also planning the launch of an equity exchange traded fund (ETF) and a Luxembourg-domiciled fund of hedge funds.
Scheduled to be rolled out this year - ahead of the official launch of Hong Kong’s ETF Connect - the new ETF is still at a planning stage, China AMC said, adding that the fund may invest in Hong Kong equities or China A-and H-shares or both.
So far, China AMC has launched 10 Hong Kong-listed ETFs, including two ETFs in the first half of this year.
Meanwhile, the Luxembourg-domiciled fund of hedge funds, also still in its planning stages, will be targeted at high-net-worth individuals through private banks.
The idea is to have a fund that invests in a diverse range of hedge funds globally.
Depending on the size of the new offering, the portfolio manager will choose between 10 and 20 underlying funds.