Mon, May 30, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Marshall Wace GaveKal to launch China fixed income strategy UCITS fund

Tuesday, February 14, 2012

Louis-Vincent Gave
Opalesque Industry Update - Marshall Wace GaveKal, the Hong-Kong-based asset manager, announces the launch of the MW GaveKal China Fixed Income Strategy. The strategy will be accessible via a long-only, UCITS fund, which will invest in debt instruments denominated in RMB, HKD or SGD. The strategy’s fixed income holdings may include government and corporate bonds though no more than 30% can be invested in non-investment grade fixed income instruments. It will have unhedged USD, Euro and GBP share classes, and the strategy will launch on March 1st 2012.

MW GaveKal believes that, as the pace of financial deregulation in China accelerates, the internationalization of the RMB and the growth of the Chinese offshore bond market will prove to be major events for global financial markets; and that it thus makes sense for investors to diversify their fixed income holdings through the ownership of RMB, HKD and SGD bonds. The manager further believes that, over the coming years, the Chinese related fixed income markets and movements in currencies will most likely continue to be driven mostly by the ebbs and flows of Chinese policy.

MW GaveKal is a joint-venture between Marshall Wace, a global hedge fund manager with offices in London, Hong Kong and Connecticut, and GaveKal Holdings, a financial-services firm headquartered in Hong Kong with further offices in Beijing and Denver. The MW GaveKal China Fixed Income strategy will be the fourth UCITS strategy focusing on Asia managed by MW GaveKal. MW GaveKal also manages separate accounts on RMB bonds and long-short equity funds on Japanese equities.

Louis-Vincent Gave, the CEO of MW GaveKal, will be managing the strategy. He will be relying extensively on the policy work done by the eight person GaveKal Research team based in Beijing as well as benefiting from the overall infrastructure of both Marshall Wace and GaveKal.

Louis-Vincent Gave said: “China’s attempt to create an offshore bond market and transform the RMB into a regional, or even global, trading currency could well be the most important financial event of the coming decade. Indeed, if China manages to do what Germany did in the 1960s and 1970s and transform its economic zone from a “US$ trade-zone” to a “RMB trade-zone”, a possible development which is now clearly China’s goal, then the repercussions on regional trade, on the volatility of growth, on the way companies finance themselves, etc. will prove to be enormous. Of course, China can only be successful in its stated goal of making the RMB a trading currency if that currency is perceived as being strong (just like the DM was in the 1960s and 1970s). Which means that the People’s Bank of China will tend to err on the side of hawkishness (as the Bundesbank used to in its pre-European Central Bank days) and that the RMB should continue to gain against Western currencies willingly debased to accommodate failing welfare-states.”

Louis Vincent-Gave added: “In our view, the creation of the Chinese RMB offshore bond market could prove to be as important for the financial world as the creation of junk bonds by Michael Milken in the early 1980s. Basically, we are today witnessing the launch of a major new market which will change the world and we are privileged enough to have front-row seats.” Corporate website: Source

(press release)

km

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. Performance - Hedge fund ETFs take a battering, Have long-short credit funds delivered?[more]

    Hedge fund ETFs take a battering From ETFStrategy.co.uk: It was a blow for the hedge fund world when Hillary Clinton’s son-in-law Marc Mezvinsky announced he would be closing his Greek-focused fund after it plummeted in value by 90%, just two years after it launched. For passive investor

  2. Ares Capital to buy American Capital in $3.4 billion deal[more]

    From PIOnline.com: Ares Management's business development company Ares Capital Corp. is buying troubled BDC American Capital for $3.43 billion, said a joint news release by the BDCs and another release by Ares Management. Ares Capital Corp.'s assets are expected to grow to about $13.2 billion when t

  3. Launches - Man Group and American Beacon launch new emerging debt fund, Nikko AM launches new Japan equity UCITS fund[more]

    Man Group and American Beacon launch new emerging debt fund American Beacon Advisors, an experienced provider of investment advisory services to institutional and retail markets, launched the American Beacon GLG Total Return Fund today. The Fund became effective May 20. The America

  4. Emerging markets hedge funds perform strongly, but capital base erodes[more]

    Komfie Manalo, Opalesque Asia: Latin American Emerging Markets and Russian hedge funds lead industry gains in the first months of 2016, posting strong performances through April as global and EM equity, commodity and currency markets surged in recent weeks following steep losses to begin the year

  5. Americas - Australian banks sending U.S. hedge funds broke, Ryan Puerto Rico ‘rescue’ bill could be windfall for hedge funds[more]

    Australian banks sending U.S. hedge funds broke From SMH.com.au: US hedge funds are not having the best of years. Profits are hard to find, they're underperforming and the punters are losing patience, withdrawing US$15 billion ($20.8 billion) in the March quarter. They're expected to wit