Flossbach von Storch adds Chinese A-shares to EM equity fund

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German boutique Flossbach von Storch has announced that its global emerging markets equities fund can now purchase eligible Chinese A-shares via the Shanghai- and Shenzhen Hong Kong Stock Connect programme, effective 21 August.

“The choice of eligible transferable securities shall be broadened by participating to the SHSC programme. Direct access to the Chinese market enables investors to achieve a broader risk diversification without being exposed to additional counterparty or issuer risks resulting from indirect investments in the Chinese market,” said the Cologne-based boutique in a shareholder letter.

The fund, which is registered for sale in Austria, Switzerland, Germany and Luxembourg, had €50.94m as of 31 July 2018. China represented 16.46 % of the portfolio holdings with Chinese tech stock Tencent as top position (6.45%).

The strategy is run by portfolio manager Michael Altintzoglou with Flossbach von Storch since 2014.