Income Partners to launch RMB bond fund

Hong Kong-based Income Partners Asset Management will begin a renminbi-denominated bond fund next month, Bloomberg reported. The fixed income asset manager cited strong investor appetite for renminbi funds, which are expected to appreciate in value over the coming months. Income Partners’ cofounder Emil Nguy said that the open-ended, long-only bond fund would "provide foreign investors a call option to play the appreciation in the yuan with an interest yield." Renminbi-denominated bonds have grown increasingly popular with firms operating in China, most recently with Caterpillar (CAT.NYSE) and McDonalds (MCD.NYSE). China’s Ministry of Finance announced this week that it intends to sell a further US$1.2 billion worth of renminbi bonds on the Hong Kong market.