FSA first reported on the fund in September.
The initial offer period is from 22 October to 2 November, according to its explanatory memorandum. China Citic Bank and Essence International Securities will serve as distributors, according to Gao Teng.
The We Fund – Gao Teng Asian Income Fund is Hong Kong-domiciled and focused on Asian US dollar-denominated corporate and government bonds with at least 70% of its portfolio invested in debt securities in Asia-Pacific region. The fund will also seek opportunities in other markets.
The fund also plans to invest at least 50% of its assets in investment grade bonds.
It aims to provide regular income and capital appreciation over the medium-to-long term.
Wonnie Chu has been named as portfolio manager of the new fund. Chu has 14 years’ research and investment experience in fixed-income, and worked at Harvest Global Investments, Met Life Investments Asia, Moody’s Investors Service (Hong Kong), and Lehman Brothers (Hong Kong), according to a statement from the firm.
Chu said: “The IMF has downgraded global economic growth forecast from 3.9% to 3.7% as a reflection of mounting pressure over Sino-US trade relationship, and fixed-income instruments are more appealing in market with low economic growth and moderate inflation.”
Retail expansion
The new fund is the firm’s first SFC-authorised retail product after it received the green light from the regulator to start its asset management business for retail investors.
Headquartered in Hong Kong, the company has acquired Type 4 and Type 9 licenses for the retail market. With these licenses, Gao Teng is able to set up overseas investment funds in Hong Kong or other qualified overseas destinations.
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