Through Smart Investment
We provide unique solutions utilizing secured fixed income products and alternative asset classes for clients. To enhance return, we focus our investments in mortgage and asset backed securities and other secured fixed-income investments.
Sparc Capital Management Licensed Type 4 & 9 asset management firm based in Hong Kong
2023 Market Outlook
2022 was a tumultuous year for most asset classes given the rate hikes and high inflation. The market expects the hiking cycle to end in 2023. Hong Kong’s sovereign curve is inverted with the 5 year at 3.151% vs the 2 year at 3.767% (as at 31 January 2023), showing the market expects long term rates to ease as inflation subsides. Lower rates will bolster Hong Kong’s property and mortgage demand. Goldman Sachs predicts that China’s reopening will increase Hong Kong’s GDP by 7.6% whilst keeping unemployment low, thus maintaining a low mortgage delinquency rate. Meanwhile, we expect Hong Kong to consistently maintain a ~2% CPI, providing a positive real return versus the high inflation elsewhere. We strongly believe 2023 is a year of recovery and rebound. For our strategy in 2023, we are focused on opportunistic investments in real estate credit across the capital structure.
MORTGAGE INCOME FUND
Seeks to provide a consistent, competitive level of income with a relatively low risk profile. Focus on capital preservation.
The fund invests in mortgage-backed securities and alternative asset classes that have low correlation to other markets providing portfolio diversification benefits.
Learn more about our funds here.
Room 901-902, 9th floor, Tai Tung Building, 8 Fleming Road, Wan Chai, Hong Kong
+852 2134 8688