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 30/04/2024Market Review and Outlook
In June, the market had expectedly swung on US macro data. Strong US non-farm payrolls surprised the market on the upside, leading benchmark rates initially higher. Subsequently, US CPI and personal consumption figures came at the lower end of expectations, pushing rates lower again. Mixed US economic data has presented challenges for the Federal Reserve in determining the timing and magnitude of rate cuts. While the Federal Reserve expectedly stayed put this month, the ECB cut interest rates by 25 basis points, making it the first rate cut in five years.
On the political side, noises around the US election grew after the first presidential debate while in France, President Macron’s snap election decision backfired with no single party securing a parliamentary majority. Political uncertainty in France has resulted in brief risk asset volatilities. India remains the bright spot in South and Southeast Asia, with Indian government bonds commencing the index inclusion process at the end of June, while Indian corporate bonds have also started seeing larger inflows since then. The key Indian Budget at the end of July would reveal if fiscal discipline can be maintained. Policy rates remain firmly on hold in regions like India and Indonesia, the Philippines might see a cut as early as August, while Australia might see another possible hike. China’s manufacturing PMI remained flat at 49.5% on a month-over-month basis and
the non-manufacturing business activity index fell a little in June, indicating the economy has yet to reboot.
Primary markets became more active as rates stabilized at the lower end of the recent trading range. Unsure of timing of the ultimate Fed cut, issuers rushed out to capitalize on the rare issuing window before summer fully kicks in. Gross issuance recorded 18.7 billion USD with investment-grade issuers continued to dominate the total volume.
Fund
For our portfolio, all three sub-strategies delivered desired returns and active hedging solutions added to the gains. Geographically, non-China positions led the gain in June. Looking ahead, macro would continue to influence market direction in a big way though Asia credit seems to have received increasingly marginal impact from the global economic and political shifts. Alpha generation will continue to be our core value proposition.
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