Alma Prudence Asia Credit
Overview
Alma Platinum Prudence invests across the liquid Asia credit market including Asia dollar bonds (IG, HY) and pan-Asian convertible bonds.
The fund’s management is delegated to Prudence Investment Management.
Share Class
NAV
Cumulative Performance (%)
Fund Inception 22 August 2023
| Daily | Monthly | Ytd | 1Yr | 3Yr | 5Yr | Incept. | Incept.Date |
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The performance data shown represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance quoted. The investment return and the principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost.
Strategy & Manager
Fund Strategy
The Strategy benefits from Prudence’s bottom-up investment approach that strives to generate attractive risk-adjusted return for investors based on its robust proprietary investment research and active portfolio management. The firm’s philosophy is based upon long-term conviction in the growth and potential of the Asia credit markets.
The differentiated investment strategy pursues alpha via three sub-strategies: event driven – mispricing opportunities triggered by idiosyncratic company events, capital market activities, media headlines and other catalysts; opportunistic long/short – fundamental / market driven long/short opportunities via cash securities and OTC derivatives; relative value – arbitrage opportunities within similar asset class and across capital structures.
Investment Manager
Prudence Investment Management is an independent investment manager founded in 2008 focused on investments in Asia credit.
With a bottom-up investment approach, aiming to generate attractive risk-adjusted return based on robust proprietary research and active portfolio management. Overseen by the large and dedicated investment team based in Hong Kong, Shenzhen and Singapore.
Prudence launched its flagship fund in 2009, which is one of the longest standing long /short Asia credit funds.
Key Persons
Chad Liu
Founder & CIO
Chad Liu, has 30 years of experience in credit and has been investing in EM and Asia credit since 2000s. He has extensive buy-side credit experience, and was previously a Director at Deutsche Bank’s Saba Principal Strategies (2006-2008), Chatham Asset Management (2005-2006) and Morgan Stanley Investment Management (1999-2005). He also worked for Shenzhen Development Bank (now Ping An Bank) from 1993-1997. Chad holds an MBA from the Wharton School of the University of Pennsylvania (1999) and a bachelor degree in Economics from Wuhan University (1993).
Linlin Ma
Co-Founder & Co-CIO
Linlin co-founded Prudence and is the Co-CIO. She serves as portfolio manager and is a member of the Investment Committee. Linlin has 18 years of industry experience focusing on Asia credit. Prior to co-founding Prudence, she worked at Deutsche Bank’s Saba Principal Strategies in Hong Kong from 2007 to 2008 and previously at Deutsche Bank in Singapore from 2005 to 2007. Linlin holds a bachelor’s degree in Electrical Engineering from the National University of Singapore.
Statistics & Commentary
Performance
The performance data shown represents past performance. Past performance is not a guarantee of future results. Current performance may be lower or higher than the performance data quoted. The investment return and the principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.
Investment Manager's Commentary
as of 31/07/2024Market Review and Outlook
Macro conditions continued to stay mixed in July. While the US inflation has ebbed, the outlook for the US economy remained somewhat murky weak employment figures and unfolding US election drama. The Fed has kept the benchmark rates unchanged but has aligned with global investors over prospects of future rate cuts. Benchmark 10-year US treasury yield compressed over 40bps in July alone and stabilized below 4% in August, the lowest level since Dec 2023. Elsewhere in developed markets, BOE (Bank of England) opted for its first 25bps rate cut in four years, in line with market expectation while RBNZ (Reserve Bank of New Zealand) led a surprise 25bps cut, both in early August. The likelihood of a moderate Fed rate cut has certainly increased.
In Asia, all eyes were on Japan. The BOJ (Bank of Japan) decided to raise the policy rate from 0-0.1% to 0.25% and curbed bond purchases in a surprise move to shore up confidence in the yen and to demonstrate its confidence in the domestic economy. The yen’s sudden appreciation due to the BOJ policy shift triggered a global market meltdown on the following Monday, from currencies, and equities to fixed income, reminding investors of the fragility of the current market. China’s 20th Party Congress and Central Economic Work Conference focused on fiscal and tax reform. In India, the post-election budget surprised the market on the upside of its fiscal consolidation targets, easing earlier fears of higher diversion to welfare spending. Elsewhere in Asia, central banks are tracking the Fed’s action closely.
Fund
Asia credit performed well in July, leading to the meltdown in early August. High beta, long duration had outperformed. The portfolio recorded a positive return this month and the event-driven strategy worked well, while hedging positions recorded some marked-to-market losses during the volatile market conditions.
Facts & Documents
Facts
Fund Domicile: Luxembourg
Fund Type: UCITS SICAV
Fund Launch: 22 August 2023
Base Currency: USD
Depositary, Administrator, Transfert Agent: Caceis Investor Services Bank S.A.
Dealing: Daily with a 3-day notice
Cut-off time: 10:00 am CET
Management Company: Alma Capital Investment Management
Investment Manager: Prudence Investment Management (Hong Kong) Limited
Countries where the fund is registered:
Luxembourg, Austria, Germany, France, Italy, Ireland, Switzerland, UK
Sustainability-related disclosures:
The information related to the integration of sustainability risks and to the potential adverse sustainability impacts at the sub-fund level can be found in the prospectus of the Fund.
Identifiers:
I1C-U
ISIN: LU2502329852
Ticker: AMPIV1C LX
Launch: 22 Aug 2023
I2C-E
ISIN: LU2502330439
Ticker: APIVI2E LX
Launch: 22 Aug 2023