MW GaveKal, the Hong Kong asset management firm, has launched a new fixed income strategy that invests in debt instruments denominated in three major Asian currencies.

Set to launch on 1 March, the MW GaveKal China Fixed Income Strategy will be accessible via a long-only UCITS fund and will invest in either the renminbi, Hong Kong dollar or Singapore dollar. The fixed income holdings may include government and corporate bonds with a maximum investment of 30 per cent for non-investment grade fixed income instruments. It will also have unhedged share classes in the dollar, euro and sterling. 

The decision to launch a strategy in the said currencies is a response to the rapid growth and global appeal of the Chinese bond market, the firm said in a statement. Over the coming years, MW GaveKal predicts that Chinese related fixed income markets and movements in currencies will most likely continue to be driven mostly by Chinese policy. 

MW GaveKal is a joint venture between Marshall Wace, a global hedge fund manager, and GaveKal Holdings, the asset manager's parent firm. The new fund will be managed by Louis-Vincent Gave, chief executive of Mw GaveKal, who will be supported by an eight-person research team based in Beijing.