M&G has announced the launch of the M&G (Lux) China Corporate Bond Fund, which provides investors with the opportunity to invest in China’s onshore corporate bond market.
The fund aims to generate a higher total return than the China corporate bond market over any three-year period, and seeks to capture relative value opportunities, combining capital growth and income, while expanding global investor access to China’s credit market, according to a statement by the UK-headquartered asset manager.
The fund will be managed by Singapore-based William Xin, who has over two decades of experience in China’s credit market.
Xin, portfolio manager, Asia fixed income, M&G Investments said: “China’s corporate bond market is one of the most dynamic in the world and global investors are attracted to the diversification it offers, its relatively stable risk-return profile and its low correlation to other bond markets. As the market continues to internationalise, we expect this will further increase demand for Chinese yuan-denominated assets over the long-term.”
Andrew Chorlton, chief investment officer of fixed income at M&G Investments, commented: “This launch follows our significant investment in expanding M&G’s global credit platform, including build-out of our Asian fixed income expertise, to enhance our ability to provide clients with innovative solutions and access to leading fixed income markets.
