Asian Investment House Launches A Fund For Stormy, Calm Weather

Tom Burroughes

18 August 2017

BOCHK Asset Management, the Asia-based investment house, has launched a China income fund that holds bonds and stocks so that it can generate returns in varied market conditions.

The firm has launched the BOCHK All Weather China Income Fund. It is available in Hong Kong dollars, US dollars and hedge renminbi share classes with minimum subscription sums of HK$10,000, $1,000 and RMB10,000 respectively. The initial offer period starts from 21 August 2017 to 8 September 2017.

The fund aims to provide income and capital growth over the medium and longer term primarily through active asset allocation in a portfolio of fixed income securities and equity securities in the mainland of China, Hong Kong and Macau markets. It intends to pay dividends on a monthly basis.

“It is expected that the US rate hike will remain slow with a limited scale, which is positive to global equity and bond markets. Meanwhile, the economy in the mainland continues to develop at a stable pace. Looking ahead to the second half of 2017, it is expected that the People’s Bank of China will continue its moderate monetary policy and infrastructure investment will be strongly supported by the government to achieve the goal of steady economic growth. In addition, in the context of global interest rate hike, limited room to raise interest rate in the Mainland and increased risk appetite in the market, the price-to-earning (P/E) ratio of China-related stocks still has room for growth,” Han Jian Chiu, Chief Investment Officer at BOCHK Asset Management, said.

The BOCHK All Weather China Income Fund is a sub-fund of BOCHK Wealth Creation Series.