East Capital launches UCITS version of China A-Shares strategy
Provides easier access to strategy following strong performance since inception
East Capital, the specialist emerging and frontier markets asset manager, has announced the launch of a UCITS version of its successful China A-Shares strategy, providing investors with easier access to investment opportunities on the Chinese onshore equity markets, facilitated in recent years by capital market reforms and the Stock Connect programme.
The strategy, which aims to deliver long-term capital appreciation by investing in high-quality companies across China and which incorporates ESG considerations within its investment and stock selection process, will be benchmarked against the MSCI China A Index.
Commenting on the announcement, Peter Elam Håkansson, Chairman and CIO of East Capital, said: “East Capital has had an on-the-ground presence in Asia since 2010, giving us a superior level of expertise into investment opportunities in China and its A-Shares market. We see this launch as a natural step in the evolution of our China A-Shares strategy and one which builds on the terrific results that the team has been able to deliver to our clients since its inception in 2014. We believe that the UCITS structure offers the best format for our clients.”
The launch comes after a period of significant focus on the Chinese market, following MSCI’s decision to include a number of the country’s A-Shares, traded on the Shanghai and Shenzhen stock exchanges, within its MSCI Emerging Markets Index.
Håkansson said, “A-Shares are becoming increasingly attractive to investors, following the MSCI’s inclusion and the recognition that they typically are a better representation of the growth dynamics with a bias on consumption and services. In addition to this, valuations currently offer good entry points whilst we keep seeing a decorrelation from global indices, providing investors with a welcome layer of diversification to their equities portfolios.”
“We continue to believe that companies embracing sustainable practices will enjoy competitive advantages and the ESG component of our strategies therefore continues to be a key focus for the business, both from a risk and opportunity perspective. Whilst emerging and frontier markets continue to make progress in these areas, there remain material differences between real and perceived ESG standards, which require in-depth analysis, insight and management,” added Håkansson.
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Notes to editors
Further relevant fund information (including prospectus, key investor information and other fund information) will be available at launch on www.eastcapital.com.
Contact information
Ilze Johnson, Marketing Communications Manager, East Capital
+46 8 505 88 550 mediaenquiries@eastcapital.com
James Morgan, MHP, Europe
+44 203 128 8208 eastcapital@mhpc.com
Judith Bence, MHP, Asia
+61 415 903 849 eastcapital@mhpc.com
About East Capital
East Capital is an independent asset manager specialised in emerging and frontier markets, founded in Sweden in 1997, with offices in Dubai, Hong Kong, Luxembourg, Moscow, Oslo, Stockholm and Tallinn. The company manages EUR 2.9 billion in public and private equity funds, real estate funds and separate accounts, for a broad international client base, including leading institutions.
Our investment strategy is based on extensive company knowledge gained through proprietary fundamental analysis and frequent company meetings. We incorporate ESG-related risks and opportunities in our investment process, and favour companies with long-term, sustainable growth perspectives and responsible owners. www.eastcapital.com
Important information
This is not an offer or recommendation to invest in any of East Capital’s funds. Full information on East Capital’s funds, such as the prospectus, key investor information document (KIID) and financial reports can be obtained free of charge from East Capital, from our local representatives and are available on East Capital’s website. Past performance is no guarantee for future performance. Fund units may go up or down in value and may be affected by changes in exchange rates. Investors may not get back the amount invested. The availability of East Capital’s funds may be limited or restricted in some countries. Detailed Information about where the funds are registered and what types of distribution are permitted can be obtained at East Capital.
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