Nomura has launched the Nomura C10 Fund, a regulated currency investment product which aims to provide investors with directional exposure to Chinese economic growth.

The Nomura C10 Fund is the latest development in Nomura's UCITS compliant products suite. Its investment objective is to provide investors with direct exposure to the performance of Nomura's C10 Currency Strategy.

"Investors seeking to participate in the China growth story have, up until now, had little choice but to suffer from the usually high volatility and the lack of liquidity and transparency associated with exposure to China. The Nomura C10 Fund is a unique opportunity to harness China's economic growth in a liquid, efficiently risk managed and UCITS compliant investment," said Jean-Philippe Royer, head of the Fixed Income Fund Solutions Group at Nomura.

Nomura's C10 Currency Strategy is designed to capture the return of currencies which are best positioned to benefit from Chinese growth and Yuan appreciation based on their country's exposure to China. Developed by Nomura's FX Research and Structuring teams, the dynamic, rules-based strategy takes long positions in 10 liquid currencies with the highest trade exposure to China as measured by the ratio of exports to China versus Gross Domestic Product.

The C10 Fund provides exposure to Chinese economic growth as it avoids issues such as negative carry in the Chinese Yuan. It does not exhibit the drawbacks of other China proxy investments such as commodities or Chinese equities, as it rebalances up or down the notional exposure to the currencies in order to target 5% volatility through a strict risk-management process.

The fund offers daily liquidity and is available in EUR, with USD and GBP-hedged share classes accessible to institutional and retail investors. It is currently approved for public distribution in Ireland and is being registered across all major European countries.