Pictet Asset Management expanded its global emerging market debt franchise with the launch of the Pictet-Chinese Local Currency Debt fund, a Luxembourg domiciled Ucits compliant fund that is a compartment of the Pictet Luxembourg Sicav.
The fund is managed by Cary Yeung, who joined Pictet AM last year from Taikang Asset Management Hong Kong.
Based in Hong Kong, Yeung is supported locally by Jennifer Chang, a senior credit analyst and Echo Chen, a specialist trader in Chinese debt.
The fund will mainly invest in Chinese onshore bonds denominated in Renminbi.
Pictet AM was granted a RMB Qualified Foreign Institutional Investor (RQFII) licence by the China Securities Regulatory Commission (CSRC) in 2014.
The RQFII licence allows access to the Chinese onshore equity and fixed income securities markets, including the A-Share equity and onshore bond markets.
This allows Pictet AM access to the exchange-traded market. An application has also been made to the People’s Bank of China for access to the Chinese Interbank Bond Market.
The fund is currently registered in the following countries: UK, Austria, Netherlands, Sweden, Germany, Luxembourg, France, Cyprus, Finland, Greece and Portugal. It will be available in other countries soon, Pictet AM said.
“In the current low yield environment, onshore Renminbi bonds offer investors an attractive yield as well as diversification and exposure to a currency with potential for appreciation,” says Cary Yeung.