Sat, Feb 25, 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. Opalesque Exclusive: Swiss investors take fund seeding and acceleration into their own hands[more]

    Benedicte Gravrand, Opalesque Geneva: Banque Bonhote, a 200-year old Swiss private bank, last year launched a community of investors - heads of Swiss family and advisory offices and wealth managers - with the aim of co-investing in the kind of managers they wanted to invest in, either by way of s

  2. K2 Advisors : Why We Like Activist Hedge Fund Strategies and Some Thoughts on Alpha[more]

    Matthias Knab, Opalesque: Rob Christian, Senior Managing Director, Head of Research K2 Advisors, Franklin Templeton Solutions, writes on Harvest Exchange: When d

  3. Ex-Navy SEAL backed by Mario Gabelli, Jean-Marie Eveillard and other value giants off to strong start[more]

    From Valuewalk.com: Sententia Capital Management is not your average value focused hedge fund. The fund was founded by Michael Zapata, a former Navy Seal Team 6 Officer and has attracted funding from some of the best-known names in the value space. Mario Gabelli, Jean-Marie Eveillard from First Eagl

  4. Europe - 1 trillion euro non-performing loans are clogging EU lending channels[more]

    From Centralbanking.com: As much as 1 trillion euro of non-performing loans (NPLs) are still clogging the lending channel in the European Union. An EU asset management company (AMC) could address market failures in the secondary market for NPLs as part of a suite of measures designed to tackle the b

  5. Investing - Hedge funds' novel approach: investing for longer at lower returns, U.S. hedge fund Delta Partners lifts stake in Bellamy's, Hedge funds stockpile cobalt, electric carmakers on battery alert, Facebook is racking up the likes among the world's biggest hedge funds, Einhorn affirms gold on Trump uncertainty[more]

    Hedge funds' novel approach: investing for longer at lower returns From FNLondon.com: Hedge funds are known for making short-term bets, dipping quickly in and out of markets to take advantage of swings in prices. But, under pressure to innovate, some big-name managers are looking at ways