Alma Prudence Asia Credit
Overview
Alma 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 30/08/2024Market Review and Outlook
August’s US economic data came weaker than market expectation, raising concerns about recession and the need for a faster Fed rate cut. Minutes from the July FOMC meeting arguably cemented a minimum of a 25bps rate cut at the September FOMC, but the market remains split between a 25bps and a 50bps cut. The treasury market responded with overwhelming enthusiasm as the benchmark 10-year US treasury yield broke all resistance and dived 20bps to below 3.9% at the end of the month.
In Asia Pacific, the Philippines and the Reserve Bank of New Zealand led the cycle by cutting the policy rate by 25bps, signaling the beginning of their rate cut and possibly other Asian countries as well. Between the two main Southeast Asian countries in focus, Indonesia is poised for a first rate cut either in the next meeting in October or following in November, to defend its currency on the back of the Fed, while India’s first rate cut would likely be delayed as inflation risk, particularly food inflation, still lingers. In China, recent data suggested underlying domestic demand may be weaker than official figures. A reduction in existing home loan rates has repeatedly come up as a possibility to boost consumer spending and market confidence.
Fund
The risk of trying to anticipate the extent of the Fed’s next rate cut or number of rate cuts towards the end of the year is that the market becomes extremely nervous about any data. August and to the extent of September, volatility in the risk market had risen. In Asia credit, however, given YTD net supply remains deeply in negative territory, the market has been relatively well-behaved. A total of US$ 10.9bn bonds were priced in August, taking YTD Asia credit gross supply to US$106bn, a 36% pick up YoY. The majority of the issuers were investment-grade rated.
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