Ping An Insurance (Group) Company of China’s offshore investment platform, Ping An of China Asset Management (Hong Kong) Co Ltd (PAAMC HK), has launched its first UCITS umbrella fund.Ping An of China Asset Management Fund, together with its four key Sub-Funds, are domiciled in Luxembourg. It plans to apply for mutual recognition by Securities and Futures Commission for public offering in Hong Kong.
The Fund’s investment strategy builds on Ping An’s 20-plus-year track record of successful investment in China equity and fixed income markets. The Fund uses PAAMC HK’s systematic, quantitative and scientific investment methodologies to offer global investors a wide range of investment opportunities in China with flexibility and efficiency.
Each of the four Sub-Funds managed by PAAMC HK has a unique investment objective and strategy:
The China A-Shares AI Multi-Factor Fund employs multi-factor models to construct a well-diversified equity portfolio. It uses advanced artificial intelligence (AI) techniques for stock selection and portfolio optimisation. It aims to achieve stable excess returns above the benchmark China Securities Index (CSI) 300 Total Return Index. In addition to applying common factors in the market, Ping An’s AI quantitative researchers have developed proprietary factors to enhance its performance and to reduce correlations with other quantitative funds.
The China Green Bond Fund mainly invests in China and emerging markets green bonds that are aligned with international standards to promote green financing and to advance environmentally friendly investments and social awareness in China and other emerging countries. Bolstered by strong domestic economic recovery and policy support, China green bonds not only help investors capture China’s green opportunities, but also mitigate risk due to its low correlations to other major asset classes.
The China High-Yield Private Strategy Bond Fund aims to achieve absolute return from investment income and long-term capital appreciation, primarily investing in high-yield corporate bonds and debt securities. It may also invest in debt securities issued by sovereign, government agencies and/or companies having main operations in mainland China.
The Emerging Market Income Fund is designed to achieve absolute return from income and long-term capital appreciation by investing at least 60 per cent of its net assets in debt securities issued by sovereign, government agencies and/or companies having main operations in emerging market countries.
Hoi Tung, Ping An Group Investment Committee Member and Chairman & CEO of Ping An Overseas Holdings, says: “Leveraging the strength of Ping An’s investment expertise in China, this new UCITS vehicle provides global investors the opportunity to invest in China’s equity and fixed income markets. We look forward to launching more products and services that meet global investor demands.”
Chi Kit Chai, Head of Capital Markets and Chief Investment Officer, Ping An of China Asset Management (Hong Kong), says: “Capitalising on the geographic advantage of Hong Kong, PAAMC HK connects mainland China with the rest of the world. We are committed to help our onshore Chinese clients to invest globally and our global clients to invest in China. Currently, we are seeing strong growth in demand for Chinese assets, as China can provide both pickup in yields and portfolio diversification. We are very excited to broaden our offering to include our first UCITS fund, which provides our global clients access to opportunities to invest in China.”