Thu, Nov 20, 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. Greenlight Re CEO says hedge fund reinsurance strategy buzz is validating[more]

    From Artemis.bm: The attention being paid to the hedge fund reinsurance business model and the fact that others are now looking to leverage bits of it within their own strategies, is validating for reinsurer Greenlight Capital Re, according to CEO Bart Hedges. There has been an increasing buzz

  2. Legal - Hedge fund manager fights £8m tax tribunal ruling[more]

    From FT.com: A hedge fund manager who may have to repay £8m in tax is trying to overturn a tribunal ruling that found he had attempted to shelter millions in an avoidance scheme. Patrick Degorce, chief investment officer at Theleme Partners, lost a tax tribunal case last year. HM Revenue & Customs c

  3. Europe - Hedge funds face exit tax as Iceland central bank discusses plan[more]

    From Bloomberg.com: Hedge funds and other creditors with claims against Iceland’s failed banks face an exit tax as the island looks for ways to unwind capital controls without hurting the economy. The government targets having a plan it can present by year-end that would map out how Iceland will sca

  4. Hedge fund Oceanwood raises $2bn, to close to new investors[more]

    From Reuters.com: Europe-focused hedge fund Oceanwood Capital Management is closing its fund to new investors after its assets under management hit $2 billion (1 billion pounds) recently, a source with direct knowledge of the matter said. Oceanwood, a multi-strategy hedge fund spinout from Tudor Gro

  5. Opalesque Exclusive: Gray Ghost Ventures aims to make impact investing commercially viable[more]

    Bailey McCann, Opalesque New York: At a time when investing in emerging markets may be falling out of fashion among some investors, Gray Ghost Ventures is confident that great opportunity exists in the emerging markets. The firm may have a unique view into this space as one of the first private