Robeco’s Chinese A-share Equities fund is now open for external subscriptions from institutional investors.
The fund offers European investors direct access to the growing potential of China’s economy and markets. The fund is a Luxembourg domiciled actively managed UCITS V compliant A-share equities fund.
Robeco’s Chinese A-share Equities fund invests in the Shanghai and Shenzhen A-share markets. The portfolio is constructed based on macro investment themes, including demographic, economic and social developments in China.
The fund combines disciplined, fundamental research with input from Robeco’s proprietary quantitative model. This quantitative model uses a unique approach, enabling the portfolio manager to analyse earnings and price momentum more accurately.
Robeco Hong Kong is responsible for the day-to-day management of Robeco Chinese A-share Equities, while Robeco Shanghai provides local advice on the fund’s investment strategy.
The fund follows a high conviction philosophy which leads to a concentrated portfolio of 30-50 stocks. It is benchmark agnostic and uses the MSCI China A International Index as a reference index. The fund is registered in Luxembourg, additional registrations and availability will be based upon investor demand in Robeco’s key markets in Europe. The fund is not yet registered locally in Asia.
Victoria Mio (pictured), CIO China and portfolio manager of Robeco Chinese A-share Equities, says: “The China A-share market is the second largest market after the US. It also has one of the lowest correlations with its global peers and therefore offers a useful tool for improving portfolio diversification. The launch of Robeco Chinese A-share Equities highlights our pioneering approach to this market. We expect A-shares to soon be included in global indices, such as those of MSCI, as China continues to focus on liberalising and reforming its domestic equity markets. This means we are ready and well positioned to enable investors to capture the tremendous investment opportunities in China.”
The launch of this fund is another milestone in Robeco’s growth strategy in Asia. Robeco Hong Kong is home to the Asia Pacific equities investment team and Robeco Shanghai focuses on A-share equities research.
The Asia Pacific equities team manages approximately EUR5.9 billion (end Q1 2017) in five strategies: Asia Pacific equities, Asia ex-Japan equities, Chinese equities, Chinese A-Share equities and Indian equities.
In 2016, Robeco opened a Singapore office which focuses on Asian fixed income research. Last year, the company also received a Wholly Foreign-Owned Enterprise (WFOE) license and was granted an RQFII quota in China.
