Asset Plus Fund Management has launched the ASP-China Bond Fund, which will invest in a mixture of offshore Chinese US-denominated fixed income securities and domestic China renminbi-denominated bonds.
“Amid global market volatility, investment in China fixed income is one of the best opportunities out there,” said Khomsan Phalanusondhi, executive director & chief marketing and product officer at Asset Plus.
“One of its advantages is its low-correlation to the global bond index. Although regulations in some industrial sectors in China have impacted investments, the China bond market continues to grow. As such, now is a good opportunity for portfolio diversifiers to navigate through this challenging period,” he added.
The ASP-China Bond Fund allocation comprises three elements: a majority allocation of 50% to mostly onshore bonds in the UBS China Fixed Income Fund; 25% to the UBS China High Yield Bond Fund to generate higher returns, and 25% to the Axa WF China Sustainable Short Duration Bonds Fund to reduce risks from price volatility, with an emphasis on short-term green bonds.
The initial public offering period runs from 1 March to 10 March, and investors can subscribe with a minimum of THB 1,000 ($31).
The fund incorporates two investment options, according to Asset Plus. The ASP China Bond-R allows auto redemption a maximum of 12 times a year, and the ASP China Bond – A is a closed fund with return opportunities gained from continuous investment until the investors sell the fund. Individual investors are eligible for tax-free redemptions on their investments.
“This is a good access point for long-term investors who can ignore the current volatility,” said Nattapon Chansivanon, executive director & chief investment officer at Asset Plus.