Permal launches renminbi share classes
London-based fund of hedge fund (FoHF) manager Permal has launched Chinese Renminbi (CNH) share classes for two of its FoHFs, Permal Fixed Income Holdings and Permal Macro Holdings.
According to Omar Kodmani (pictured), president of Permal Group, the CNH share class is a response to economic stress in Europe and the US. Permal’s investors, including high net worth individuals and institutions, are keen on diversifying investment exposures through this share class, a source familiar with the fund said.
Kodmani said the new share class is a response to investor interest in the “China development story”.
“In today’s markets, there are remarkably few good growth stories in the world and with China looking well placed for a soft landing, with inflation under greater control, investors are keen to increase their exposure to the market,” he added.
Permal Fixed Income Holdings CNH share class will be launched at the end of September and the Permal Macro Holdings CNH will be launched shortly afterwards.
Permal has increased its focus on China recently, hiring China expert Zhiwu Chen, professor of finance at Yale University, as a consulting chief adviser in June.
Permal Fixed Income Holdings is a $5.7bn global fixed income FoHF and Permal Macro Holdings is a $6.1bn global macro FoHF. Both funds currently offer US dollar, euro, sterling, yen and Swiss franc share classes. The Swiss franc share classes were launched earlier this year for investors seeking a more defensive investment strategy.
The majority of Permal’s investors are located in the Americas, Europe, the Middle East and Asia.
Permal was established in 1973 as the alternative investment arm of Worms & Cie. It was acquired by Legg Mason, the NYSE listed asset manager in 2005. Today Permal has over 200 employees in offices across nine international financial centres.