20 Oct 2011
The Allianz RCM Renminbi Currency fund has received Luxemburg regulatory approval and will launch across Europe on the 18th October 2011.
The Allianz RCM Renminbi Currency fund aims to allow investors to participate in the appreciation of the RMB at a lower level of risk. It is intended that the fund will invest 100% in deposits and will be highly liquid. The fund will be managed by Helen Lam who is based in Hong Kong and successfully manages the Allianz RCM Renminbi Fixed Income fund which has been closed at its capacity of €450 million.
Expected volatility will be low to medium given that the RMB is still controlled by the Chinese authorities who have signaled their support for the gradual appreciation of the currency for the benefit of the Chinese economy.
The Allianz RCM Renminbi Currency fund aims to allow investors to participate in the appreciation of the RMB at a lower level of risk. It is intended that the fund will invest 100% in deposits and will be highly liquid. The fund will be managed by Helen Lam who is based in Hong Kong and successfully manages the Allianz RCM Renminbi Fixed Income fund which has been closed at its capacity of €450 million.
“Despite the recent weakness and volatility in global financial markets, we believe that China remains committed to the gradual appreciation of the RMB given the need to redirect its economic focus from export driven to domestic consumption and to become less reliant on the global economy,” said Lam. “In overall terms, the RMB has continued to appreciate while other Asian currencies have experienced a sharp decline since August this year and eroded all the short term gains they had earned against the US dollar in the previous month.”
Expected volatility will be low to medium given that the RMB is still controlled by the Chinese authorities who have signaled their support for the gradual appreciation of the currency for the benefit of the Chinese economy.
Lam said: “I believe, offshore RMB deposits are playing an increasingly important role in the Hong Kong financial market and the RMB deposit base has seen exponential growth since its introduction late last year. RMB deposit base accounts are around 600 billion at present (approximately 10% of the total Hong Kong deposit base) and we expect this to continue to grow and to reach around 2 trillion in a year and a half’s time.”
