Renminbi Bond Strategy

Launched in November 2007, Stratton Street's Renminbi Bond strategy provides investors with a relatively high income while enabling investors to gain exposure to the dynamic growth of the Chinese economy through bond and currency investments.


What is the Renminbi Bond Strategy?

  • Available in AIF or UCITS structures

  • Aimed at providing high income and exposure to the dynamic growth of the Chinese economy, through bond and currency investments

  • Targets undervalued bonds which amplify capital appreciation while reducing downside risks

  • 100% exposure to the Chinese renminbi

Why invest in the Renminbi Bond Strategy?

  • Over a 10 year track record

  • Access to the undervalued Chinese renminbi; with carry annualised above 2%

  • Net Foreign Assets (NFA) analysis and macro forecasts optimise the country and credit quality positioning throughout the cycle

  • Unconstrained by indices so proprietary global pricing model allows selection of undervalued credits within Pan Asia

  • Strong focus on sovereign and quasi-sovereign exposure (over 80%)

  • Use of NFA analysis & focus on Investment Grade space to allow better downside capital protection & lower volatility

  • Actively managed duration to manage the interest rate exposure as the Fed tightens monetary policy

  • Lacklustre global inflation remains supportive for fixed income

Key Facts

  • High, single A rated portfolio (this varies depending on the stage of economic cycle)

  • Gross redemption yield of circa ~ 4% (at 31 January 2019)

For further information on the fund please email or call +44 (0) 20 7766 0888.

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