The fund house said it is “bridging the gap in RMB investments” and broadening RMB investment opportunities beyond the usual equity and fixed income products to RMB investors and deposit holders.
For RMB Qualified Foreign Institutional Investors (RQFII), the HFT (HK) China RMB money market fund represents a “relatively” low risk investment avenue, allowing them to benefit from the “attractive” yields of money market instruments in China, the fund house said.
RQFIIs can gain exposure to steady yields that are relatively high for money market returns from an international perspective, the fund house added.
Jelle Vervoorn, chief executive of HFT, said: “The target investors for this fund include institutional investors as well as private investors holding RMB. It taps into an obvious need of these groups to enhance the returns on their RMB investments without them having to take the risk of equity investments or traditional fixed income funds.”
The new fund will be available in share classes in other currencies, so even investors who do not hold RMB themselves can enjoy the onshore yields, with the potential of currency gains if the RMB exchange rate resumes its longer-term appreciation course, the statement said.
Fund houses are trying to tap the demand for RMB products, with J.P. Morgan Asset Management recently announcing a new RMB share class to its multi-income fund, having introduced a similar share class in its Asia equity dividend fund earlier in March.
HFT Investment is 51% owned by China-based Haitong Securities and the rest 49% is owned by BNP Paribas Investment Partners BE Holding (originally named Fortis Investments). BNPP IP BE Holding is the fully-owned subsidiary of BNP Paribas Investment Partners.
