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Ecofin launches China power and infrastructure fund

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Ecofin has launched the Ecofin China Power & Infrastructure Fund, which is designed to generate risk-adjusted returns in greater China.

Ecofin has launched the Ecofin China Power & Infrastructure Fund, which is designed to generate risk-adjusted returns in greater China.

The fund seeks to generate absolute returns with lower volatility than the Chinese market through portfolio construction based on macro and fundamental research.
 
Ecofin says the Chinese government is in the midst of a massive upgrade of the country’s infrastructure – transportation network, renewable energy, as well as utility generation and distribution.

It says the build-out of China’s infrastructure and the transformation of energy consumption structure will continue to be among the most important global investment themes in the next decades to come, as China continues to emerge as a world power and is set to become the world’s largest economy within a decade.

 ‘In this environment the fund will seek profit from a number of specific opportunities in the infrastructure and power universe. The secular growth opportunity, visibility of cash flows, and the asset-backed nature of the companies favour the risk profile of the sector, while the dispersion of returns will provide fertile ground for long and short tactical allocation,’ says Bernard Lambilliotte, chief investment officer of Ecofin.
 
The long biased long-short fund will range between 20 per cent and 100 per cent net long, with a max of 150 per cent gross and no financial leverage. The fund will invest mainly in large cap stocks, and will have monthly liquidity with 30 days redemption notice.

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