Heptagon Capital has partnered with Harvest Global Investments to launch the Harvest China A Shares Equity Fund, a UCITS fund vehicle providing for daily liquidity under the RQFII programme.
Heptagon, a London based USD9 billion specialist asset management business, is launching the fund on its Irish UCITS platform, where Harvest has been appointed the sub-investment manager.
The fund will aim to build on the success of Harvest’s ‘Research Select’ strategy, the equity portion of which has outperformed the CSI 300 index by 75 per cent since inception in May 2008.
The Harvest portfolio managers employ a Growth At a Reasonable Price (GARP) approach and focus on well-positioned companies with superior growth and quality. This is a bottom-up stock picking strategy, with a long-term outlook based on company fundamentals which invests in a concentrated portfolio of high conviction stocks that trade in RMB. Unhedged USD, EUR and GBP share classes are to be offered by the fund.
Peng Choy, CEO at Harvest Global Investments Ltd in Hong Kong, says: “Harvest was one of the first groups to receive RQFII (Renminbi Qualified Foreign Institutional Investor) status in 2011, and since then we have been at the vanguard of efforts to allow international investors to gain exposure to the economic opportunities in China and indeed the wider Asian markets, across all asset classes.
“Recently, we have pioneered the listing of ETFs on various global exchanges, with exposure to the CSI 300 and the MSCI China A Index, and feel that this fund launch is a natural progression of these global efforts. We are now bringing our actively managed China A Share equity strategy to a wider geographical investor base through our sub-investment manager role for Heptagon’s Irish regulated UCITS fund vehicle. Heptagon’s differentiated approach to providing unique and difficult to access investment solutions to sophisticated investors makes us confident that they are the right partner to help us deliver our successful China A share investment approach to international investors.”
Fredrik Plyhr, founding partner at Heptagon, says: “We are delighted that Harvest has chosen Heptagon to be its partner for the launch of this historic UCITs fund under the umbrella of our USD3bn Irish fund company. This is the first time that an actively managed, well-performing strategy from a leading domestic asset manager in China has been launched for UCITS investors with daily liquidity. We are very pleased that our clients, as well as the broader UCITS fund investor base, will now have access to the equity capabilities of one of the most widely respected asset management houses in China, with the largest market share by institutional assets under management.”