CLO

Collateralized Loan Obligation (“CLO”) refers to the securitization of a portfolio of senior secured, liquid, floating rate, broadly syndicated, corporate leveraged loans that structures as bond tranches with different risk/reward mixes. CLOs consist of approximately 90% debt capital (AAA to B) and 10% “first-loss” capital (commonly referred to as CLO “equity”). It is a term, non-recourse instrument with limited and manageable mark-to-market risk. The CLO market size is closed to US$1200bn with annually issuance approximates US$100bn for the last 10 years. CLOs are not only attractive financial instruments; they play an important role in promoting, developing and sustaining the real economy in the US and Europe. 70% of the capital required to be raised from the US and European high yield credit markets are raised through CLOs.
The core competitiveness of JinYi focuses on the fundamental analysis ability of the industry and the company, strict investment screening criteria, meticulous handling of legal documents, professional negotiation skills, comprehensive risk management system and quantitative analysis tools through simulation of different situations. At the same time, JinYi has rich experience in CLOs management and has withstood the test of the crisis. As the underlying asset quality is better than the market average, the exposure is highly dispersed, the mature investment research system guides the position adjustment and reduces the risk exposure in a forward-looking manner, the performance of the product is relatively stable since its establishment.

China Credit

Following the incremental and measured relaxation of financial supervision of Chinese financial markets, Chinese corporate have successfully sought to utilize global financial markets to raise and diversify its funding and sources. Annual issuance volumes for China US$ offshore bonds was approximately US$15.7bn in 2010 and reached in excess of US$240bn by 2019. The market for China US$ offshore debt remains robust with outstanding volume of over US$953bn, which represents a doubling over the preceding 5 years. China US$ offshore bonds make up nearly 46% of all Asia offshore bonds, making it the largest geographical constituent. The issuers are primarily large SOEs, LGFVs and systematically important companies, among which, 60% are rated investment grade by S&P/Moodys/Fitch and more than 50% of which are state-owned. Relative to onshore bonds of the same issuer, the offshore issuance offer significantly better value given a meaningful yield pick-up which is largely driven by discrepancies in rating methodology, market structure and investor sentiment.

JinYi Capital is widely recognized as one of the best offshore credit managers in China. Our executive team members have an average of 15+ years of relevant professional experience obtained through working at top-tier global and local financial institutions. To capture attractive risk-adjusted yield through carry and capital appreciation, our fund primarily invests in China US$ offshore bonds issued by Chinese corporates, quasi-governmental entities and financial institutions. Over 70% of the fund is allocated into investment grade issuances (rated by S&P, Moodys, Fitch or through JinYi’s internal rating system) with robust credit fundamentals.

Loans & ABS

Broad syndicated loans. BSLs are issued by a span of obligors from various industries. A single or several banks, also known as arrangers, are in charge of aggregate, arrange, and execute these loans for securitization or other purposes. BSLs are more cost-effective when compare with bilateral or personal credit facilities.

Direct loans. This approach is often used when the borrower sources its financing needs through non-bank institutions directly especially they are not capable of a bank loan due to reasons other than credit risks.

Assets-backed securities. Residential mortgages, commercial mortgages, auto loans, credit cards, receivables, and other credit loans qualify to be securitized.

Based on abundant experience in ABS, JinYi Capital participates in restricted bank required reserve releasing transactions. By taking the first loss or mezzanine risk, the original loan pool with lower average rating can be enhanced to AAA or AA assets. Thus reducing the regulatory requirements on the bank’s reserve and profiting from the credit enhancement service fee. JinYi Capital not only supports the basic mode of this kind of transaction, but also can adjust the product structure flexibly according to the circumstance.

Global Infrastructure FoF

Under the current global situation, infrastructure construction is a must-selected allocation target. It has the ability to resist inflation, resist cycles, and have weak correlation with stocks. It is a rare defensive asset. The entry threshold for real asset investment is high, and the annualized dividend can reach about 6%. The global core fund portfolio selects the world’s top infrastructure investment institutions and their flagship funds to escort investors. And enjoy the potential dollar appreciation benefits brought about by global allocation.

Global Selective Large-Cap Equity

This strategy aims to achieve “long-term stable” value growth. The funds are invested in the stocks of listed companies in China, North America, Europe and other parts of Asia with top market capitalization and absolute leading technologies or deep moats in their respective fields, which mainly cover high-tech, high-end manufacturing, medical treatment and mass consumption. The strategy boosts yield through precision stock selection and quantitative risk management, with exposure to no more than 5 per cent of a single stock. At the same time, the fund uses S&P 500 put options for long-term macro risk hedging to protect the portfolio from the impact of tail risk events. The strengths of this strategy are the allocation of global core assets, an active risk management system, strict adherence to the principle of diversification in a single region, a single industry, a single company, and the use of derivatives to effectively hedge and reduce tail risk.