Luo, who starts on 12 September, will report to Wilfred Sit, chief investment officer for Asia and will be based in Hong Kong. She will also become lead manager on the Baring Hong Kong China Fund and a number of segregated portfolios.
Meanwhile, Winston Ke, who has been part of the team managing the group’s China A-share product since its inception, will become lead manager on the Baring China A-Share Fund, which Deng previously managed, effective immediately. He will report to Luo.
Deng had managed the flagship £1.55bn Baring Hong Kong China Fund since joining the group in 2007. The fund has recently been downgraded by Morningstar OBSR, who said it believed the execution of the investment process was ‘somewhat hampered by the fund’s large size’. The ratings group added: “Combined with a relatively unstable analyst team and lack of a supportive long-term track record, Morningstar OBSR believes a neutral rating better reflects the fund’s capabilities.”
Luo joins from Schroder Investment Management where she worked for over 12 years with responsibility for managing assets of over $2bn. She had managed the Schroder ISF China Opportunities Fund since launch in 2006. The fund has marginally underperformed its peer group over five years. It is up 10.1% compared to a rise of 13.6% for the wider offshore Equity – China sector.
The Baring Hong Kong China Fund has also seen weak performance over five years, though stronger short term performance. It is up 9.1% since September 2008, compared to a return from 20.7% from its Equity – Greater China sector peer group. Over one year, the fund has returned 15.2% against a sector average of 14.4%.
Ke, who has taken over on the ‘A’ shares funds joined Baring Asset Management in April 2010 from First State Cinda Asset Management in Shenzhen, China, where he covered China A-Share markets.