Aberdeen Standard offers attractive yield with China bond fund
Asset manager Aberdeen Standard Investments has launched the Aberdeen Global – China Onshore Bond Fund, which promises investors attractive yield and low correlation.
Asset manager Aberdeen Standard Investments has launched the Aberdeen Global – China Onshore Bond Fund, which promises investors attractive yield and low correlation.
The inclusion of Chinese bonds in the Bloomberg Barclays Aggregate Index is an incremental step in China opening up its economy that has been welcomed by investors, but their introduction to popular emerging market indices could be more disruptive.
China’s currency depreciation trend playing out in 2016 looks set to continue, according to Jade Fu, investment manager at Heartwood Investment Management.
The risk of a serious devaluation of the renminbi is likely to continue to fuel market volatility, said Gary Greenberg, head of emerging markets at Hermes.
China’s bid to have the renminbi included in the IMF’s Special Drawing Rights basket now has support from the head of the IMF and the US Treasury Secretary.
EM-shy investors can find income stability in Chinese investment grade bonds as further easing looms, according to Axa IM’s Jim Veneau.
China and Greece are merely distractions, says Liontrust’s John Husselbee, and investors should be focusing on the US interest rate headline event.
Yuan devaluation will rescue the global market from overheating and restore the deflationary recovery, according to Royal London Asset Management’s Trevor Greetham.
The one-off depreciation of the yuan needs to be just that in order to avoid sparking a currency war and derailing the global recovery, according to industry experts.
The Nikkei 225 ended the first half of 2015 at an 18-year high, and after 20 years of deflation there are hopes that the Japanese market is finally taking off.
Axa Investment Managers is preparing for a “major initiative” into the renminbi bond market with a significant shift within its emerging market debt offering.
Teresa Kong argues that the recent moves in Chinese currency markets are not just a healthy thing to see but necessary for an economy looking to increase the role of the market in allocating resources.