July was a very poor month for Asian markets, particularly China, where increased regulatory crackdowns led to extreme volatility across both equity and credit markets. Tech and property sector regulations continued to worry investors, but it was the announcement by the Chinese government of very harsh regulation in the after-school education sector that seemed to drive markets sharply lower. For the month, the HSCEI was down -12.8% while the HSI finished down -9.6%. Credit markets were weaker as well, with the Bloomberg Barclays Asia High Yield Index falling -4.6% while the BAML Asia High Yield Index fell -6.1%. During the month, the yield on the Asia High Yield Index rose from 7.49% to 9.38% and the spread over treasuries widened from 690bps to 887bps. The Fund was down in July -2.66%, and while the negative return was disappointing, we preserved capital well in the broader context and feel our activities during the month have set the Fund up well for strong performance in the coming months.
To read more click download the factsheet: Tribeca-Vanda-Asia-Credit-Fund-Monthly-Update-July-2021