The manager said the new investment was funded from the gilt portfolio, where yields look “increasingly unattractive” after a period of strength. The Thames River offering was launched on 3 May and is managed by Stephen Drew and Mehrdad Noorani.
“The [high yield debt] asset class should benefit from a prolonged period of low interest rates in the developed world and a continued, albeit not necessarily rapid, economic recovery,” Borrows said.
The fund, which is able to invest in assets directly and through third party managers and products, is also a believer in the prospects for its property holdings, according to Borrows.
“Macau Property Opportunities Fund gave a positive quarterly update, not long after having announced a return of capital to shareholders from the sale proceeds of one of its development properties.
The company has also been actively buying back shares, as has Treasury China Trust. We believe there remains significant value in the shares of both companies despite recent upward moves.”
