Quantitative-focused asset management firm Acadian Asset Management has launched the Acadian China A-Shares strategy.
It is run by Asha Mehta who is a portfolio manager on the company’s quantitatively managed strategies, focusing on frontier emerging markets, emerging markets small caps, and sustainability investing.
Acadian covers over 3,000 of the approximately 3,500 A-Shares listed companies.
Foreign investors have access to onshore listed A-shares through the licensing framework of the RMB Qualified Foreign Institutional Investor (RQFII) programme for qualified institutional investors, and more recently through the less-restricted Shanghai and Shenzhen Stock Connect mechanisms.
“This strategy highlights Acadian’s ability to manage the unique risks associated with the A-Shares asset class, such as volatility spikes and market interventions, as we continue to expand our global reach and add to our offerings in emerging markets,” said portfolio manager Mehta.
“The A-Share universe materially broadens our opportunity set. It is also a much less efficient segment of the equity universe and thus potentially very rewarding for a disciplined and structured approach to investing. As this market expands, we believe there is a robust opportunity for alpha generation and data analysis,” she added.
“We’re in a strong position to be able to leverage our expertise in quantitative investing and experience with emerging markets to provide our clients with this opportunity to invest in onshore China. We believe China will play an increasing role in our clients’ portfolios. The launch of the China A-Shares Strategy is the next step for us in terms of strategy development and a testament to our continued effort to support our clients’ needs,” said Ross Dowd, co-chief executive officer at Acadian.
Acadian had over $96bn (€77.9bn) of assets under management as of 31 December 2017.