The RHB China Bond Fund is a feeder fund that will invest at least 95% of the net asset value in Blackrock Global Funds – China Bond Fund, according to a media statement. It was launched on 15 May 2019, with five currencies classes.
“Through this fund, investors will be able to tap on the opportunities and potential of the China market, capitalising on China’s growth as one of the fastest growing economies in Asia,” said Eliza Ong, managing director and chief executive officer of RHBG AM, in the statement.
The Malaysian firm is working with Blackrock to expand its distribution and product capabilities, enabling investor access to market trends and investment opportunities in China, the statement said.
Blackrock’s China Bond Fund principally invests in on- and offshore-issued RMB-denominated fixed income. The top holding is Huaneng Hong Kong Capital, part of state-owned utility Huaneng Group, and among the top ten positions are bonds issued by China Development Bank. Corporates make up the bulk of the portfolio. About 45% of the portfolio is in BBB-rated bonds and an additional 16% in A rated.
RHBG AM, a wholly-owned subsidiary of RHB Investment Bank, offers both conventional and Islamic products and reported asset under management of RM49.2 bn ($11.9 bn) at the end of May.
RHB Banking Group is the fourth largest financial services group in Malaysia.
Malaysian firms are trying to provide more offshore exposure to investors. Earlier this month, Kuala Lumpur-based Affin Hwang launched a locally-wrapped version of UBS Asset Management’s China A Opportunity Fund for sale to Malaysia’s qualified investors, according to a statement from the firm.
Other foreign managers are also introducing products in Malaysia. BNPP AM plans a product push in Malaysia using the feeder fund route, and Schroders has set up a partnership with Maybank for domestic fund distribution.
Malaysia’s asset management industry aims to renew itself through product innovation and international partnerships, but is facing a talent shortage, FSA reported earlier.
BlackRock – GF China Bond vs category average
