The company, which is wholly owned by Geneva-based Banque Baring Brothers Sturdza SA, said it was responding to “strong investor demand” for bond funds denominated in the Chinese currency. Many investors are said to see renminbi-denominated securities as offering diversification benefits as well as the potential for more positive returns than might be expected from a fund denominated in another currency, as the RMB appreciates “over the medium to long term”, EISSML said in a statement.
It added: “This is one of the first funds launched which combines a proven total return global bond strategy with the additional upside potential of the Chinese currency.
“E.I. Sturdza believes that the Chinese renminbi will become a major focus for institutional mandates that have looked to gold and the Swiss Franc for safety in the past decade.”
The fund seeks to return between 250 and 300 basis points over US Treasury bonds, and has a minimum subscription of $5,000, EISSML added. It was launched in June, and has assets under management of around $61.4m.
E.I. Sturdza says it currently manages $1bn on behalf of institutional and private clients.
Fund details
The E.I. Sturdza Strategic Global Bond Fund is an underlying fund of E.I. Sturdza Funds Plc, a UCITS IV-qualifying umbrella fund. Its sibling underlying funds include the E.I. Sturza Strategic China Panda Fund, Strategic Euro Bond Fund, Nippon Growth (UCITS) Fund, Strategic Emerging Europe Fund, Strategic Europe Value Fund, and Strategic US Momentum and Value Fund.
As at the end of June, the Strategic Global Bond Fund’s yield to maturity stood at 3.9%.
The company describes the portfolio management process of the fund’s Geneva-based portfolio manager, Eric Vanraes, as employing “strong convictions supported by technical analysis, minimum diversification and proprietary risk management tools".
It says the portfolio includes only US dollar-denominated corporate and investment grade bonds, and offers flexibility in terms of duration and maturities.
EISSML was established in Guernsey by Banque Baring Brothers Sturdza in November 1999.
To see a Morningstar report on the fund, click here. To read about the fund on the EI Sturdza website, click here.
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Fund fact box
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Name
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E.I. Sturdza Strategic Global Bond Fund
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Domicile
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Dublin
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Minimum investment
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$5,000
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Currencies
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US$,RMB
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Type of fund
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Dublin-domiciled Ucits IV long-only global bond fund
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Annual maintenance fee
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0.9%
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Launch date
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June 2012
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Size
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$61.4m
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Manager
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Eric Vanraes
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