Introduction

Our fixed income funds focus on offshore debt of Chinese issuers, supplemented with Asian and other global securities for improved diversification. With continuing decrease in China onshore interest rate and the opening up of onshore financing to offshore Chinese issuers, supply of quality offshore Chinese bonds become increasingly constrained and often present very attractive absolute and relative value investments.

Being a specialist in offshore Chinese bonds, we invest across investment grade / quasi-sovereign, high yield and convertible bonds. We emphasize both macro and policy studies, as well as company specific fundamental and corporate governance analysis. We also pay high attention to capital structure and seek to position with the most attractive instruments. For high yield investments, we look for bonds with multiple supportive factors so that our investments could be safe across market cycles.

We seek return mainly from interest income, supplemented with capital gain from tactical trading and new issues. Subject to investment policy and restrictions of specific funds/accounts, we often employ prudent and low cost leverage to enhance return, and apply macro hedge instruments to contain undesired interest rate, currency and systematic risks.