Allianz Global Investors is to launch a renminbi fixed income fund under its subsidiary RCM, subject to regulatory approval.

The fund is looking to capitalise on the appreciation of the renminbi as it moves towards less regulated convertibility. RCM predicts currency growth of 5-7 per cent per annum.

It will be the first UCITS fund with access to the renminbi offshore bond market, according to RCM Asia Pacific chief executive Mark Konyn.

“This is a conservatively run, steady appreciating access to currency fund with a bit of yield pick up and low volatility” said Konyn.

The fund will be dominated by deposits and short term investment strategies, and anticipates a 1.5 per cent initial yield rising to between 2 and 2.5 per cent over 6 to 9 months.

The fund will be managed by Helen Lam, who has worked at JP Morgan and is currently a member of the group’s regional fixed income management team.