Universal-Investment and Stratton Street have jointly launched the Stratton Street Ucits UI Renminbi Bond Fund, based on Stratton Street's existing renminbi strategy.
Universal-Investment and Stratton Street have jointly launched the Stratton Street Ucits UI Renminbi Bond Fund, based on Stratton Street’s existing renminbi strategy.
The original strategy has been managed by Stratton Street since 2007, and focuses on creditor rather than debtor nations.
Andrew Seaman, fund manager for the Stratton Street Ucits Renminbi Bond Fund (pictured) says “index based bond funds buy more from the most indebted. We buy from creditors, who can sustain their debts and pay us back.”
Creditor nations are better able to borrow to fund long term growth. This reflects in currency appreciation. Stratton Street believes that the renminbi will double in value over the next decade.
The original strategy has produced positive returns every year since launch, and the Ucits version will give more investors access to it. As a fairly stable currency, the renminbi also points to relatively low volatility in the fund, Stratton Street said.
The Luxembourg Sicav fund is available to both retail and institutional investors – minimum investment €250,000 – and is available in euro, sterling, Swiss franc, dollar and offshore renminbi share classes.
Stratton Street is a fixed income specialist with some €1.3bn under management.
Universal-Invest has some €170bn in assets under administration, with over 1,000 funds and investment mandates, primarily targeting German speaking Europe.