Fixed Income
Embrace Long-term Sustainability
Research-oriented, well balanced between macro analysis and credit research
Investment Objective
Aim to provide a stable level of income as well as capital appreciation for investors, through investing in debt securities issued by governments, government-related entities, and corporations in Asia with a focus on Greater China region.
Investment Philosophy
Investment opportunities in current Chinese bond markets lie in credit risk dislocation. With absence of international ratings and normalizing credit markets (there was no default cases in Mainland China before year 2012), increasing credits risks also implies increasing investment potentials in Mainland China. Along with allocation to fixed-income instruments in addition to onshore bonds, the team is able to generate long-term sustainable return.
On the basis of macro analysis, strategy research, and credit research, the team further enhances the cooperation between investment specialists and research analysts to capture the movements in macro conditions, interest rate and market trends. The team strictly manages credit risks and strives for stable excess return.
Main Investment Target - Chinese Offshore USD Bonds
This strategy mainly invests in Chinese Offshore USD Bonds, with additional touch on overseas bonds, to generate long-term sustainable return. Focusing on the credit standing of issuers, the investment team evaluates yields of individual bonds through "bottom-up" approaches, information mining, and deep research, while portfolio management and trading strategy also take into consideration internal "top-down" studies on macro environment and sector rotation.
