Allianz broadens distribution of renminbi FX fund
Germany’s Allianz Global Investors has signed an exclusive distribution deal with Skandia in the UK for its Allianz RCM Renminbi Currency fund, making the product available on the Skandia Investment Solutions platform from this month.
The fund is one of a spate of similar launches from other groups recently offering access to renminbi currency deposits as Beijing internationalises its capital markets.
Nick Smith, a managing director of Allianz Global Investors Europe, said the group expected good demand after the Allianz RCM Renminbi Fixed Income fund closed to new investors recently after reaching €450m, to preserve fund liquidity.
Smith said: “At present China remains essentially closed in terms of capital accounts and the renminbi can only freely flow out of China for trade purposes. This makes the offshore RMB market the most cost-effective and efficient way to participate in the RMB appreciation story.”
Fund managers have estimated the annual appreciation in the currency will be between 4% and 6% as China opens its sheltered capital markets.