Stratton Street is a London based fund management and advisory company specialising in fixed income markets.

Renminbi Bond Fund | Performance vs other Renminbi strategies:

Rather than divide the world between developed and emerging markets, at Stratton Street we believe it makes more sense to separate creditors from debtors.  

Net foreign assets as proportion of GDP (2011)

Source: Stratton Street Capital LLP calculations

Countries are screened by their ability to repay debt, using Stratton Street’s net foreign assets (NFA) model, and then credits are evaluated based on value for money and fundamentals of the credit. Investing in fixed income based on index weights simply means having to buy more of a country or company’s debt as it becomes more indebted.