New Index covers fast growing “dim sum” bond market of RMB denominated fixed income
Walnut Creek, CA, September 21, 2011
AlphaShares, LLC announced today that it has launched a new China Yuan Bond Index designed to track bonds that are denominated in China’s local currency the renmimbi or RMB. (Renmimbi means "people’s currency". Renmimbi are denominated in the unit Yuan.)
The AlphaShares China Yuan Bond Index measures and monitors the performance of an investable universe of publicly-available Chinese fixed income securities denominated in Chinese Yuan and includes bonds issued by both mainland Chinese and non-Chinese entities.
"The young but fast growing market for so-called ‘dim sum’ bonds provides investors the opportunity to own bonds denominated in the RMB giving US investors direct exposure to the Chinese currency” said Dr. Burton G. Malkiel, Chairman of the AlphaShares Index Committee and a co-founder of the firm. “Historically, these bonds have had low correlations with US bonds and other developed market bonds and as a result are an excellent way to diversify a fixed income portfolio." In addition, said Dr. Malkiel, “The index includes only investment-grade credits from major issuers including the Chinese government and Chinese government agencies such as the Export Import Bank of China and the China Development Bank. Approximately 90% of the issues in the index are rated A- or better."
The AlphaShares China Yuan Bond Index has been licensed to Guggenheim Funds Investment Advisors, LLC (“Guggenheim”). Previously AlphaShares has licensed four China equity indexes to Guggenheim, the AlphaShares China Real Estate Index, the AlphaShares China Small Cap Index, the AlphaShares China All Cap Index and the AlphaShares China Technology Index. AlphaShares, LLC is a portfolio company of Northern Lights Capital Group.
AlphaShares, LLC is an investment firm dedicated to providing investors with strategies and products to participate in China’s fast growing economy. AlphaShares investment philosophy and strategies are based on the beliefs and research of co-founder and Chief Investment Officer, Dr. Burton G. Malkiel. The AlphaShares team has over 100 years of experience with firms including, Barclays Global Investors, BARRA, Robertson Stephens & Company and The Vanguard Group. More information is available at www.alphashares.com.
About Northern Lights Capital
Northern Lights Capital Group is dedicated to identifying and collaborating with leading boutique asset managers exhibiting exceptional investment skill with client-oriented business cultures. We apply our strategic resources, including operating capital, institutional distribution, access to seed apital, and operational expertise to help our partner companies excel. Northern Lights: Boundless pportunities. Enlightened Investments. For more information please visit www.nlcg.com.
Kevin T. Carter