Fund Management

T Rowe Price Given Green Light To Launch Fixed-Income Funds In Hong Kong

Robbie Lawther, Reporter, 19 September 2017

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The four funds will be made available for retail investors in Hong Kong.

Global investment manager T Rowe Price Hong Kong has obtained authorisation for four fixed-income funds with Hong Kong’s Securities and Futures Commission (SFC).

The funds are the first of T Rowe Price’s fixed-income products to be made available for retail investors in Hong Kong. The funds, which are part of the T Rowe Price Funds SICAV range, are the Emerging Markets Bond Fund,  the Euro Corporate Bond Fund, the European High Yield Bond Fund and the Global High Income Bond Fund.

The Emerging Markets Bond Fund will invest at least two-thirds of total assets in debt securities issued by governments, government agencies, supra-national organizations and companies that are either incorporated in one of the economically emerging countries of Latin America, Asia, Europe, Africa and the Middle East or conduct most of their business in such countries. The fund will be managed by Michael Conelius, lead manager of T Rowe Price's emerging markets bond strategy.

The Euro Corporate Bond Fund will invest at least two-thirds of total assets in debt securities denominated in euros. The fund may also invest in debt securities issued by Eurozone governments and government agencies, and in securities denominated in other currencies than the euro. The fund will be managed by David Stanley, portfolio manager in the fixed income division responsible for European corporate bond selection.

The European High Yield Bond Fund will invest at least two-thirds of total assets in debt securities that are rated below BBB- by Standard & Poor’s or have an equivalent rating (or, if unrated, are of equivalent quality), and are issued by companies and denominated in euro or another European currency. The fund will be managed by Michael Della Vedova, global high-yield portfolio manager in the fixed income division.

The Global High Income Bond Fund will invest at least two-thirds of total assets in debt securities that are rated below BBB- by Standard & Poor’s or have an equivalent rating (or, if unrated, are of equivalent quality) and are issued by companies. The fund is managed by Mark Vaselkiv, chief investment officer of fixed income as well as head of the global high-yield team in the fixed income division.

“With the persistent low-growth environment and interest rates at historic lows, these newly-authorised1 funds meet the increasing demand among Hong Kong investors for new, high-yield investment solutions by providing greater access to some of T Rowe Price’s high-performing fixed-income strategies" said Elsie Chan, head of intermediaries, Asia ex-Japan.

"The authorisation of these funds also marks a new milestone for T Rowe Price in the Hong Kong market, following the successful authorisation of six equity funds in the city, and forms part of the firm’s long-term growth plan for Asia to provide a boarder range of products for the region’s investors," Chan added.

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