Morgan Stanley Investment Management (MSIM) today announced the launch of the Morgan Stanley Investment Funds’ China A-shares Fund.
The Luxembourg domiciled fund has based its strategy on some of the fastest-growing sectors of the Chinese market, and is tailored to appeal to HNWIs domiciled in China.
The fund aims to capitalize on pricing anomalies and inefficiencies in the A-shares market through the construction of a portfolio of companies across industries that have potential for faster than overall GDP growth. The portfolio is concentrated around 25 to 40 active positions which the investment team believes could be some of China’s current and future leading companies.
Hong Kong-based lead portfolio manager, Gary Cheung, set the launch in a wider context, saying “We believe China’s economy will shift from being driven by investments and exports, to one that is driven more by consumption and services. In our opinion, exposure to A-shares will be vital for investors to participate in this growth.”
Paul Price, MSIM’s Global Head of Sales, said: “Across the platform, our equity portfolios are run by long-tenured portfolio managers with consistent philosophies that deliver low turnover and concentrated products. We’re delighted to be able to offer our China A capabilities to a broader client base via the SICAV structure.”
MSIM has been managing dedicated China A portfolios since 2006, with a history of investing in Asia dating back to 1986. The company manages US$1.1bn in China A Share assets across separate account portfolios including a closed-end US mutual fund.