Wed, Dec 17, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Stratton Street Launch offshore Renminbi (CNH) and Swiss franc Currency Classes to the Renminbi Bond Fund

Tuesday, January 31, 2012
Opalesque Industry Update: Stratton Street Capital LLP has announced the addition of two further currency classes to its Renminbi Bond Fund: the offshore Renminbi (CNH) and the Swiss Franc reflecting broad investor demand for this strongly performing investment vehicle.

Through 2011, the Renmimbi Bond Fund increased in size from $47 million to $93 million by the end of the year. Investors saw a return of 9.73% on the US dollar class. This compares with the return of the HSBC Offshore Renminbi Bond Index which returned 1.63% in US dollars.

The new currency classes have been split in to two further sub-classes, one for Advisors and Wealth Managers and a separate sub-class for Institutional Investors, in order to widen distribution of the fund. Dealing remains on a weekly basis with a further dealing day added, based on the month end NAV (Net Asset Value).

Commenting on the addition of the offshore Renminbi to the Fund’s currency classes, Andy Seaman, Partner and Portfolio Manager at Stratton Street Capital, said: “The offshore Renminbi bond market, which it is still in its infancy, trades relatively expensively to the onshore domestic market. Our Fund is unique in that it offers Renminbi exposure by taking a portfolio of Asian bonds and adding the currency exposure to the Renminbi US dollar rate. By doing this, we are then able to create a higher grade portfolio and achieve a yield much greater than the Offshore Renminbi (Dim Sum) Bond market.

“Currently our portfolio is yielding 6% gross against 2% gross for a similar duration Dim Sum portfolio. We remain fearful that the performance of the Dim Sum market will need to correct further with yields rising and portfolios underperforming, as increased bond issuance introduces further liquidity.

“We remain ready to invest directly when we believe the time and the quality of the debt issues reflect the wider bond market opportunities. In the meantime, we believe that this is a well-structured way of maximizing returns for holders of CNH and other currencies.” Stratton Street Capital LLP saw further rise in overall assets under management and advice, which rose from $593 million at the start of the year to $940 million at the end of 2011.

Press Release

Read our past coverage of Stratton Street Capital and watch our Opalesque TV interview with Managing Partner Andrew Main.

Stratton Street Capital

BM

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Investing - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Opalesque Exclusive: U.S. legal receivables fund launched in August[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Investing in asset-backed receivables is a strategy that has been an integral part of the alternative investment space within the overall fixed income asset c

  4. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und

  5. Performance - Lansdowne, Man Group, other hedge funds profit from shorts in oil, Turmoil boosts hedge funds that bet against Russia, oil, CTAs post strongest returns since December 2010[more]

    Lansdowne, Man Group, other hedge funds profit from shorts in oil From Valuewalk.com: The rising short interest in oil companies implies that the worst for oil is yet to come. Data from Markit shows that short exposure in energy sector of S&P 500 is still looming close to the highest mar