Alpha Fund Managers has awarded a mandate to a specialist equity and fixed income boutique investment manager.
Premium China Funds Management's Premium Asia Income Fund was selected for its ability to manage emerging market debt sector exposure and strong performance record, said Alpha Fund Managers portfolio manager Julien Brodie.
He added the fund has moderate volatility with dynamic hedging capabilities that provide protection against adverse currency movements, and is managed by a highly experienced investment team.
Using a value-oriented, intensive bottom-up fundamental credit analysis approach, the fund aims to generate a minimum 6% per annum return. The fund has delivered 11% per annum net of fees since its inception in August 2011.
It invests in a diversified portfolio of high yielding global fixed interest securities and actively hedged to the Australian dollar.
Premium China executive director and chief investment specialist Jonathan Wu said: "By not taking into account the credit ratings paid for by corporates to the largest western rating agencies, we are able to expand our breadth of research to uncover overlooked credit securities in the market paying superior yield with less risk than what the market perceives. It is fantastic to see forward thinking institutional multi-managers like Alpha Fund Managers appreciating the power of in-depth credit research in places like Asia."
Premium China Funds Management has three other actively managed funds: Premium China Fund, Premium Asia Fund and Premium Asia Property Fund targeting Australian and New Zealand investors.
Alpha Fund Manager recently invested in US$7.5 billion Florida-based manager DSM Capital Partners' Global Growth Equity strategy.
In October, it took a stake in India Avenue Investment Management's India Avenue Equity Fund, which invests in 51 listed Indian companies, and appointed PM Capital to manage its diversified fund-of-fund international equities strategy because of its ability to generate above market returns over the medium to long-term.