Allianz Global Investors is working towards reopening the renminbi bond fund it soft-closed at the end of the summer last year after it attracted €450m in assets just two months after opening.
The reopening of the Allianz RCM Renminbi Fixed Income Fund, a Ucits IV Sicav, is still subject to internal and legal work being completed but the first day of investment is expected to be 6 August.
In a note sent to investors, the company said: “Since the closing of the fund in August last year the offshore Renminbi market has seen some positive development in terms of tradable volume, liquidity, and daily conversion limits. These facts and the reduced fund volume enables us now to reopen the fund for new subscriptions.”
Nick Smith, head of UK retail sales, explained that even when the fund was launch such was the developing nature of the remninbi bond market, with the liquidity issues that posed, soft-closing at around €400m was always a possibility.
"We knew the market was developing rapidly, with more issues and participants coming to market and brigning with them greater liquidity," he added.
"The market has matured significantly in the past 12 months and we have the headroom now to reopen to new investments."
The fund is run by Helen Lam and currently has around €370m in assets under management. She primarily invests in investment grade bonds, with 44.6% in A-rated paper. Duration is relatively short, with more than 70% with less than three years to maturity.
Lam also looks after its Renminbi Currency Fund, another Ucits IV Sicav, launched in October last year.