The EFG GLOBAL YUAN PORTFOLIO Index certificate that we advise was created in February 2019 to help clients build their exposure to the Chinese Yuan through a highly diversified portfolio of quality Chinese money-market, bonds, and equity instruments.
It is managed as a Balanced Portfolio with a performance objective of 6 to 8 % per annum in Yuan on a five-year rolling basis.
Structured as an EFG debt instrument issued in US Dollars, the Global Yuan Portfolio enables a one-line exposure to the Chinese Yuan and Chinese Assets. It is priced and settles in US Dollars but invests in Chinese Yuan-denominated instruments.
Great performances in 2019
Despite the balanced nature of its asset allocation with more than 40 % in equities, the EFG GLOBAL YUAN PORTFOLIO delivered spectacular performances in the last 10 months of 2019 thanks to the quality of our stock-picking and our allocation to Precious metals.
In YUAN terms, the EFG GLOBAL YUAN Portfolio added +9.09 % in December, and for 2019, a 10-months performance of +21.47 % net of all fees
In US Dollar terms, the EFG GLOBAL YUAN Portfolio added +10.18 % in December, and for 2019, a 10-months performance of +16.95 % nets of all fees
Our active currency management also added alpha as the Yuan was trading at 6.70 when the product was launched in February 2019 and it depreciated by 4 % since then while the performance differential between the CNH valuation and the USD valuation stands at 4.52 %
Balanced Asset Allocation
EFG GLOBAL YUAN PORTFOLIO Index Certificate is a great instrument to build one’s exposure to the Chinese Yuan and the timing is perfect as we expect a secular rally in Chinese assets to have started in 2019.
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