Bosera and Standard Life Investments launch Global Emerging Opportunities Bond Funds
10 May 2016
Standard Life Investments (Hong Kong) Limited (“Standard Life Investments”) and Bosera Asset Management (International) Co., Limited (“Bosera International”) today announce the launch of the Bosera-Standard Life Investments Emerging Opportunities Bond Fund (the “Fund”).
The Fund signals the establishment of a strategic relationship between the two companies, with an aim to collaborate in several areas including joint product innovation and investment management cooperation.
The Fund is a sub-fund of Bosera Investment Funds, an umbrella unit trust established under the laws of Hong Kong. The Fund aims to achieve income and capital appreciation through primarily investing in global emerging market (“EM”) debt securities and emerging market currencies.
The development of the Fund builds on the combined strengths of Standard Life Investments’ strong emerging market debt investment capability and Bosera’s China fixed income expertise.
The new Fund will be managed by Kai He, Head of Fixed Income at Bosera International, who is responsible for portfolio allocation in the mainland China and Hong Kong, and for the investment management of the Fund overall. The sub-manager of the Fund is Richard House, Head of Emerging Markets Fixed Income at Standard Life Investments, who will manage portfolio allocation in emerging markets globally except mainland China and Hong Kong.
David Peng, Head of Asia, Standard Life Investments, said, "The co-creation of the new Fund in Hong Kong signifies the first step in our strategic collaboration with Bosera International, one of the leading Chinese asset managers, which reinforces Standard Life Investments’ global business strategy and strong conviction in the China growth trajectory.
Bosera International and Standard Life Investments have a proven record of picking successful investment opportunities from within the Chinese bond market and global EM debt respectively. Working together, with our combined international and local market insight, our clients are offered exposure to an expanded global universe of EM opportunities. This underpins our commitment to deliver innovative investment solutions designed to meet the evolving needs of investors."
Kai Shao, Executive Vice President, Shenzhen headquarters of Bosera International, said, "Capitalizing on the collective strengths of Standard Life Investments’ global investment expertise and Bosera’s China fixed income capability, the partnership aims to strengthen both companies’ ability to deliver for investors. We are delighted to have this excellent opportunity to collaborate with Standard Life Investments on product development, investment management and knowledge exchange.
The joint development of the new Fund marks the first initiative of our strategic relationship. This is great news for our clients as they are now provided a new investment choice to tap into the wider, exciting EM fixed income opportunities."
Kai He, Head of Fixed Income, Bosera International, commented, "The Chinese bond markets, both onshore and offshore, have become a more and more important part of the world’s fixed income market, and have been delivering good returns over the past years. We believe it is worth giving China a more fair allocation in the EM space, by which investors will benefit from an enlarged opportunity set. This is what this Fund will bring about."
Richard House, Head of Emerging Markets Fixed Income, Standard Life Investments, added, "The fundamentals of emerging markets are stronger than commonly believed. EM sovereign debt offers an attractive opportunity for both long term growth and income, and has produced better risk-adjusted return than developed markets bonds over the long term. Currently, EM sovereign debt offers one of the highest yields among liquid global fixed income asset classes. The Chinese bond market is the third largest in the world. The weight of China in current EM debt indexes does not reflect the global importance of the Chinese bond market and we believe it should form a more significant proportion of a global EM debt portfolio. "
About the Bosera-Standard Life Investments Emerging Opportunities Bond Fund
The Fund has been launched in Hong Kong on 9 May, 2016. The Fund seeks to achieve its investment objective by investing at least 70% of its net asset value in a wide spectrum of bonds issued by governments, quasi-government entities or corporations in emerging markets countries and emerging market currencies globally.
The Fund may also invest up to 20% of its net asset value in bonds issued and/or guaranteed by a single sovereign issuer (including its government, public or local authority) which is below investment grade and/or unrated. The remainder of the Fund may be invested outside of its principal geographies and asset classes, including debt instruments issued in developed and developing markets (such as US treasuries, corporate bonds, money-market instruments and deposits), funds and cash equivalents.
The Fund will have no obligation to invest in any country at any given time, and is not subject to any limitation on the portion which may be invested in any one country or region, except that no more than 20% of its net asset value will be invested in onshore China securities – such investment will be made through Bosera International’s status as a Renminbi Qualified Foreign Institutional Investor ("RQFII"), utilising the company’s RQFII quota pursuant to the RQFII regulations. The Fund’s maximum combined allocation to onshore and offshore Chinese bonds will be 40%.
The USD-denominated Fund currently has Classes A and I of Units available to investors. The minimum initial investment for Class A and I are USD1,000 and USD100,000 respectively. The initial subscription price for each share class is USD10 per Unit.
Please refer to the Hong Kong offering document for further details of the Fund, including its investment objective, strategies and risk factors.
For further information please contact:
Standard Life Investments (Hong Kong) Limited
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Bosera Asset Management (International) Co., Limited
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