Navigating Volatility to Create Opportunities and Deliver Stable Capital Appreciation for Investors
HONG KONG SAR 11 November 2024 – As a leading investment management company specializing in fixed-income and multi-asset strategies, Zhong Ou Asset Management International Limited (“ZOAM Intl.”, or the “Company”) is delighted to celebrate the first anniversary of its flagship ZO Neo-Horizons Bond Fund (the “Fund”). Since its inception, the Fund has been entrusted with the long-term mission of assisting investors in achieving a high level of current income, providing steady capital growth, and diversifying investment risks – a mandate that has proven invaluable amidst the prevailing environment of interest rate volatility and heightened macroeconomic headwinds.
Over the past year, powered by the Fund’s seasoned investment management team and forward-looking asset allocation strategies, the ZO Neo-Horizons Bond Fund has delivered robust and commendable returns, underscoring its exceptional value as a fixed-income investment proposition. This performance has been particularly noteworthy against the backdrop of the highly volatile market conditions that have plagued the broader capital markets.
ZO Neo-Horizons Bond Fund adopts a flexible asset allocation strategy, not confined to a single market or bond type nor relying on simple passive index tracking. Instead, the Fund employs an active management approach, dynamically investing across a diverse range of fixed-income assets, including investment-grade corporate bonds, high-yield bonds, and government securities, based on evolving market conditions. The Fund also implements a multi-layered risk control mechanism, utilizing in-depth market analysis to anticipate and mitigate potential risks while employing derivative instruments such as interest rate futures to further hedge against market volatility.
Capital markets have displayed pronounced fluctuations as the global economy gradually recovers from the pandemic. Persistent inflationary pressures, coupled with supply chain challenges and geopolitical factors, have resulted in losses and dampened investor confidence for many. In light of this, fixed-income products, geared with relatively steady return profiles and lower volatility, have emerged as the optimum investment choice for investors seeking stable income and risk diversification. In addition to providing steady cash flows, fixed-income securities can also help investors hedge against the uncertainties associated with equity market fluctuations, thereby balancing the inherent risks posed by varying interest rate environments.
“ZO Neo-Horizons Bond Fund was designed to help investors achieve relatively stable capital appreciation in turbulent market environments,” said Ms. Yolanda Ye, the Head of Fixed Income and Multi-Asset at ZOAM Intl. “Through flexible asset allocation and sophisticated risk management, we have invested cautiously in a wide array of global fixed-income assets. Investors can timely adjust their portfolios to seek higher returns as the market evolves. When interest rates rise, the Fund can reduce exposure to long-term bonds and increase holdings in short-term bonds to mitigate interest rate risk; conversely, when rates decline, we can increase allocations to long-term bonds to capture the profit opportunities from bond price appreciation.”
As a key product offering from ZOAM Intl. in the current market landscape, ZO Neo-Horizons Bond Fund aims to provide investors with a relatively stable investment choice through agile asset allocation and proactive risk management. Going forward, the Company will continue to leverage its expertise in fixed-income and multi-asset management to introduce further innovative products that cater to investors’ evolving and diversified asset allocation needs. 
