Bosera Asset Management has $28.5bn in assets under management which puts it in the top five of its kind in China. On 21 October it will formally launch the Bosera Renminbi Income Fund that will be marketed in the UK by North Square Blue Oak, a global institutional broker with its headquarters in London.
Manager Anthony Lo will invest in investment grade renminbi-denominated bonds, notes, certificates of deposit, deposits and other instruments issued directly or indirectly by government bodies, agencies, banks and corporations.
It has daily liquidity and will target 5% returns, including any appreciation in the currency. The minimum investment is $100,000 and any receipts will be added to $6m of seed money from Bosera.
Laurie Pinto, joint chief executive of North Square Blue Oak, commented: “China is short of options to temper inflation and currency appreciation offers one way in which they can do so. Additionally, given recent economic events, with US debt being downgraded and the ongoing eurozone debt crisis, the likelihood has increased that the renminbi will become a base currency sooner rather than later.
“Our view is that the renminbi is currently significantly undervalued and is set to appreciate at between 5% and 7% per annum.”
