Launched as part of the firm’s Luxembourg-domiciled UCITS Global Strategy range, the Investec GSF All China Equity Fund will make use of Investec’s Renminbi Qualified Foreign Institutional Investor (RFQII) licence to gain access to both onshore and offshore Chinese equities.
Investec said it intends “in the near future” to launch a second fund focused on onshore Chinese bonds that will also make use of the firm’s RFQII licence.
The fund is co-managed by Greg Kuhnert and Wanyi Yao and is supported by the Global 4Factor™ Equity team that site in both London and Hong Kong, the firm said.
According to Kuhnert, the fund will aim to access its best ideas at the cheapest price, irrespective of where the company is listed, be it on the A or H-share market or a USA listing. But, he added, there are a number of pricing anomalies that currently exist as a result of the opening up of the local market.
“As we look at the fund’s investment universe of over 1000 companies we are excited by the opportunities arising from the shifts in the growth drivers of the Chinese economy, and believe that a disciplined bottom-up approach focusing on quality, improving profitability and valuation is key to capturing these trends,” he said.
Adding: “This represents a natural progression for our 4Factor Equity business. China has always been an important part of our universe, and we have demonstrated our ability to leverage our knowledge of the domestic A-share market through our QFII China Fund.”
