HFT Investment Management Launches High Yield Bond Fund
The launch follows the granting of an RQFII quota of RMB 800 million by the China State Administration of Foreign Exchange in May this year. HFT HK launched its first RQFII fund in January 2012 with a RMB 1.1 billion quota.
The HFT (HK) China High Yield Bond Fund is aimed at investors seeking high income and regular dividend distribution and who are comfortable with the risks associated with high yield bonds.
The Fund seeks to achieve income generation and long-term capital appreciation by investing primarily in debt instruments issued and distributed in the PRC and Hong Kong. Under the RQFII framework, not less than 60% of its total assets are invested in RMB denominated debt issued in the PRC; and not more than 40% are invested in bonds issued in Hong Kong. The Fund’s initial public offering period is from 12 November to 11 December with the fund itself being launched on 12 December 2013.
“The fixed income instruments in various Chinese markets offer different opportunities in terms of yield and liquidity. The Fund combines bonds traded in all markets to offer a truly diversified portfolio aiming to reap the best of all these markets”, said Jelle Vervoorn, Chief Executive Officer of HFT HK.
To enhance the unique nature of the Fund, two innovative features are being offered:
Monthly income distribution: The Fund aims to distribute dividends on a monthly basis, providing investors with a regular stream of income.
Flexible and liquid investment in 6 different currencies: Investors can buy units of the Fund in six different currencies, namely RMB, USD, SGD, HKD, EUR and JPY. This open-end and SFC-authorised fund also benefits from daily liquidity and a bridge loan is available to facilitate any redemption requests.
At HFT, high yield bond selection benefits from the company’s in-depth local research and international standards in portfolio management. The fixed income team manages USD 6.4 billion as of October 2013.