PAX : Pacific Alliance Asia Opportunity ups convertible bond exposure
Pacific Alliance Asia Opportunity has published its interim accounts covering the six months to the end of June 2014. The net asset value rose by 4.8% over the period as the underlying Master fund rose in value by 5.1%. The announcement says that the Master Fund plans to up its allocation to Convertible Bonds from 30% to 40%, recycling money from its bridge financing activities as loans mature. They says they have identified opportunities in short-term asset financing in Chinese logistics, State-Owned Enterprise privatisation and clean energy companies and expects to get some equity exposure to these underlying companies alongside the loans it makes. They also say they are thinking about expanding the Master Fund from $2bn to $2.5bn.