25 August 2020
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BMO Global Asset Management has announced the expansion of its responsible investments range with the launch of the BMO LGM Responsible China A-Shares Equity Fund.
The launch, which follows on from the recent launch of its Responsible Asian Equity Fund, brings BMO GAM's responsible and sustainable range to 15. The Fund will be managed by BMO GAM's emerging markets equity specialist team, LGM Investments, who will work closely with BMO GAM's Responsible Investment team.
BMO said the new fund provides investors with the opportunity for active, fundamental management in the China A-Shares equity market - companies listed and traded in the mainland stock markets - allowing foreign investors access to a larger and more diverse pool of companies in China.
As China continues to transform and develop, we see increased opportunities for long-term investors. In recognising the governance issues in the onshore market, we believe these can be addressed by ensuring ESG factors are a focal point in the decision making process."
As part of the Responsible Range, the fund also employs BMO GAM's Responsible Investment philosophy, with a strong focus on corporate governance and management of environmental and social issues, ensuring:
- Risk is reduced, as environmental, social, and governance (ESG) considerations in stock analysis helps to mitigate risks associated with investing in emerging markets;
- Sustainability issues are addressed, with the Fund seeking to invest in businesses that help address sustainability challenges in China that are prevalent across the developing world; and
- Better management of ESG issues is encouraged through engagement and voting.
The BMO LGM Responsible China A-Shares Equity Fund is managed by June Lui, CFA, who also runs BMO GAM's Greater China Strategies and is based in Hong Kong. June is supported by the wider LGM Investments team of 17 professionals located in London and Hong Kong.
June Lui, lead fund manager of the BMO Responsible China A-Shares Equity Fund, said: "We are excited by the potential of the onshore China equity market and are delighted to be among the first to launch a Responsible Fund in this area."
"As China continues to transform and develop, we see increased opportunities for long-term investors. In recognising the governance issues in the onshore market, we believe these can be addressed by ensuring ESG factors are a focal point in the decision making process."
"We aim to generate strong long-term, risk-adjusted returns by investing in a conviction portfolio of high-quality companies that demonstrate responsible business practices and a positive contribution to society," Lui added.
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