Chinese asset management firm ChinaAMC has launched an absolute return sub-fund within its Luxembourg-domiciled Sicav ChinaAMC Ucits Fund, InvestmentEurope can reveal.
The ChinaAMC Summerspring Fund, which has been soft-launched in June 2017, primarily invests in China-related listed stocks globally, including but not limited to H-shares, red-chip stocks listed in Hong Kong, B-shares listed on the Shenzhen and Shanghai stock exchanges, other stocks of Chinese companies listed in the United States, Europe and Singapore and stocks of non-Chinese companies which are expected to derive meaningful growth out of China.
It also considers growth stocks in other markets that stand to benefit from favorable demographic, technological and/or economic changes.
In addition, investments can be made in ETFs and open-ended funds which are fully or partially invested in Chinese equities.
According to fund literature, the ChinaAMC Summerspring Fund will seek exposure to China A-shares through the fund’s own and/or third party’s Qualified Foreign Institutional Investor quota in the form of equity-linked notes, participating certificates, fully funded swaps and other similar instruments issued by third party QFIIs and/or Stock Connect. Direct investment in China A-shares are capped to 35% of the sub-fund’s net assets.
For the manager, “China’s economy has shifted from a high growth period to a medium growth period.”
ChinaAMC believes that China’s ongoing economic restructuring from an investment driven economy to a consumption and service driven economy may give rise to many emerging seedling companies with great growth potential.
It will also seek opportunities arising in industry consolidation and M&A trends against the backdrop of China’s economic growth’s slowdown over the next five years.
The ChinaAMC Summerspring Fund combines bottom-up and top-down approach and goes with fundamental research and analysis.
The fund is said to be available in US dollar, euro, reminbi and sterling share classes.