Hong Kong-based Gao Teng Global Asset Management has launched the GaoTeng Greater China Select Bond Fund, which received approval from the Securities and Futures Commission (SFC) in early December last year, according to a statement from the firm and the regulator’s records.
Co-managed by James Wong and Kenny Chung, the Hong Kong-domiciled product will invest around 70% of its fund assets in the Greater China region, which includes mainland China, Hong Kong, Macau and Taiwan, and at least a third of its assets in companies with businesses in the Greater Bay Area, the statement said.
“Since the current interest rates are only slightly higher than historical lows, we believe that 2021 will be the year of high yield bonds. While the global pandemic situation has not been fully under control, China’s economy is regarded as the strongest among the other major countries.
“Based on these two factors, we believe China high yield bonds should be viewed as one of the key financial investments in 2021,” the statement said.
Besides high yield bonds, the fund also has the flexibility to invest in investment grade bonds to manage downside risks, it noted.
SFC-authorised funds
The joint venture between Tencent and Beijing-based Hillhouse Capital Group was established in 2017, and it launched its first SFC-authorised fund, the Asian Income Fund, in 2018.
In May last year, it started targeting global investors with the launch of its first Ucits fund, the Gao Teng Penguin Asia High Yield Fund.
In total, the firm manages seven SFC-authorised products, which include two money market funds, the GaoTeng WeIncome Low Volatility Short Duration Fund, and the GaoTeng Emerging Market Fixed Income Fund.
The firm is also eyeing opportunities in the mainland. In August last year, it filed an application with the China Securities Regulatory Commission (CSRC) to sell the GaoTeng Asian Income Fund to mainland investors via the Hong Kong-China Mutual Recognition of Funds (MRF) scheme. CSRC record shows that it is still awaiting for regulatory approval.
The firm has two other strategies for professional investors, which are the Greater China Short-Dated High Income Strategy and the Emerging Markets Long/Short Fixed Income Strategy, according to the firm’s website.
