Sat, Oct 21, 2017
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. Regulatory - David Stockman: Trump tax reform overhaul is a pipe dream, stocks are heading for 40-70% plunge, Carried interest tax: How much does it matter?, Odey sees 'terrifying' mix in MiFID, tapering, asset values, Hedge funds come together to share cost of MiFID and research, SEC turns up the heat on U.S. investment advisers, India's Sebi asks hedge funds to report investments in commodity derivatives[more]

    David Stockman: Trump tax reform overhaul is a pipe dream, stocks are heading for 40-70% plunge From CNBC.com: David Stockman is warning about the Trump administration's tax overhaul plan, Federal Reserve policy, saying they could play into a severe stock market sell-off. Stockman, the R

  2. North America - Puerto Rico rejects loan offers, accusing hedge funds of trying to profit off hurricanes[more]

    From TheIintercept.com: Puerto Rico has rejected a bondholder group's offer to issue the territory additional debt as a response to the devastation of Hurricane Maria. Officials with Puerto Rico's Fiscal Agency and Financial Advisory Authority said the offer was "not viable" and would harm the islan

  3. Investing - WPP targeted by short-selling American hedge fund, Sun co-founder sells secretive hedge fund on big chip trade[more]

    WPP targeted by short-selling American hedge fund From Cityam.com: An American hedge fund has mounted a bet against WPP, the world's largest advertising group, with a trade worth almost £90m. Lone Pine Capital has built a short position worth 0.51 per cent of the FTSE 100 company,

  4. Hedge funds up as industry adjusts to rising rates[more]

    Komfie Manalo, Opalesque Asia: Hedge funds have reshuffled their portfolio after nearly four weeks of rising rates as the Lyxor Hedge Fund Index was up +0.2% from 19 September to 26 (+1.1% YTD), fuelled by strong results of global macro funds, Lyxor Ass

  5. Manager Profile - How the world's hedge fund king used 'idea meritocracy' to become a billionaire[more]

    From Forbes.com: In 1982, Ray Dalio made what he calls the biggest mistake of his life. He made a bet that there would be an economic collapse stemming from a debt crisis. And he was wrong. He lost money. He lost his client's money. He had to let people go from his firm and borrow money from his dad