We are pleased to announce the launch of our new RA China Multi-Asset Income Fund, which will be managed by our Asian Equities Team, and which will concentrate on capturing the capital gain and income opportunities in the China markets.
The fund will provide active asset allocation with comprehensive risk management, and it will be apportioned between Chinese equities (50%), Cash Equivalents (10%), Chinese Bonds (35%), and Alternative Asset Classes (5%), which are suitably positioned to take advantage of the growth potential that is available in the Chinese markets.
The fund will be investing in both H-Shares and A/B Shares within the Equities market, and both Offshore and Onshore RMB in the Bonds market, and our fund managers will actively manage the exposure to any onshore equities and fixed income assets in order to take advantage of the growth opportunities presented by onshore assets.
We will be diversifying our portfolio across many industry sectors, but the fund will concentrate primarily in Financials, Utilities, Health Care, and Energy, which we feel are the areas which offer the best opportunities for gain and show the highest growth potential. The exact asset allocation may deviate from the range set out in our fund brochure in order to accurately negotiate market fluctuations.
With zero interest rates, investors will be rewarded primarily through income on assets, with regular monthly payouts and a sustainable income stream provided mainly by the fixed income assets. In addition, there will be a sustained and comprehensive risk management strategy in place on currency and interest rates in order to reduce the potential of loss during negatively fluctuating markets.
China is undergoing an economic and social transformation, and evolving into a new economic model, driven primarily by the rise in the upper-middle-class population and the change in consumer behavior as a result of the average age of high income earners getting younger. Despite the recent trade wars, opportunities in China are opening up and there is a trend of institutional investors entering the markets.
The China A-shares market is the second largest in the world by capitalization, and China’s onshore bond market is the third largest in the world in terms of market value, offering comparatively attractive incomes. We aim to capture the growth and income opportunities presented in the China markets and in turn offer them to our clients.
Director of Emerging Markets, Depak Reyansh, said, “China is undergoing an economic transformation at the moment and we want to take advantage of the opportunities being offered up by the emergence of this huge market. We have been considering the growth opportunities in China for a long time, and we have been working hard in order to structure a fund portfolio which is designed to capture the best opportunities while minimizing the risk exposure for our clients. We feel very confident that this fund will present our clients with investments which can offer both growth and income potential.”
About Reily and Associates:
Reily and Associates is an expatriate wealth management company based in Tokyo, Japan, which offers high quality financial services and investment opportunities to a broad range of clients, both independent investors and institutional clients, as well as specializing on catering to an expatriate clientele. Reily and Associates’ core investment philosophy is based around innovation and global diversification, and in offering equal investment opportunities for both institutions and individuals.