On the 8th anniversary of the original Renminbi Bond Fund ("RBF"), the Chinese renminbi should finally receive the official global reserve status we have been patiently anticipating.
The number 8 in Chinese culture represents luck, fortune as well as “strong intuition and insight”. For us therefore it seems particularly fortuitous that Monday’s anticipated inclusion of the renminbi into the SDR arrives the same day as the 8th anniversary of our Renminbi Bond Fund.
Launched in 2007, before any other fund of its kind and well before the launch of the Dim Sum market itself, RBF aimed to create a sensible high grade asian bond product with exposure to the appreciation of the Chinese renminbi. The latter on the premise that this highly competitive superpower - accounting for their large reserves, current account and trade surpluses, inflationary pressures and welfare/prosperity aspirations - would pursue a lofty ambition of equal global reserve status with the US dollar.